英财 第十二章答案.docxVIP

Ex. 12.5a.1.Net income (all applicable to common stock) ………………$1,920,000 　　　Shares of common stock outstanding throughout the year ..400,000　　　Earnings per share ($1,920,000 ? 400,000 shares) ………..$4.80 　　　　　　　2.Net income ……………………………………………………………………..$1,920,000 　　　Less: Preferred stock dividend (100,000 ? 8% ? $100) …………………. 800,000　　　Earnings available for common stock ……………………………………….$1,120,000 　　　Shares of common stock outstanding throughout the year ………………..300,000　　　Earnings per share ($1,120,000 ? 300,000 shares) ……………………$3.73 　　　　　　b.The earnings per share figure computed in part a (2) is a basic EPS figure. Although the company has outstanding both common and preferred stock, the preferred stock must be convertible into common stock in order to result in a diluted computation of earnings per share. The potential conversion of preferred stock into common stock is what necessitates disclosure of diluted EPS. Because the preferred stock in this exercise is not convertible, the EPS computation is basic.　　　　　　　　　　　　Ex. 12.6a.　200720062005　　Earnings per share …………………………………………….$1.88 $1.575 (1)$1.20 (2)　　(1)$3.15 originally reported, divided by 2 (twice as many shares)　　(2)$2.40 originally reported, divided by 2　　　　　　　　　　　b.Following the stock dividend, the earnings per share of earlier periods should be retroactively restated to reflect the increased number of shares. In this situation, each new” share (after the 100% stock dividend) is equal to only one-half of a 2006 or 2005 share. If the earnings of each 2006 or 2005 share are allocated between the two “new” shares, each new share is viewed as having earned one-half of the original amount ($3.15 ? 2 = $1.575; $2.40 ? 2 = $1.20).　　　　　　　　　　　　　　　　　　　　　　Ex. 12.7a.Apr.30Memorandum: Issued an additional 1,000,000 shares of capital stock in a 2-for-1 stock split. Par value reduced from $1 per share to $0.50 per share.　　　　　　　　　　　　　　　　　　　　　　June1Dividends ………………………………………………………….1,200,000　　　　　　Dividends Payable ………………………