Financial & Managerial Accounting 17th Edition by Jan Williams ,Susan Haka,Mark Bettner,Joseph Carcello

تمرين 10

The net income of Foster Furniture, Inc., amounted to $1,920,000 for the current year.
a. Compute the amount of earnings per share assuming that the shares of capital stock outstanding throughout the year consisted of:
?? 1. 400000 shares of $1 par value common stock and no preferred stock.
?? 2. 100,x000 shares of 8 percent. $ 100 par value preferred stock and 300,000 shares of $5 par value common stock.
b. Is the earnings per share figure computed in part a(2) considered to be basic or diluted? Explain.