Financial accounting 16th Edition by Jan Williams,Susan Haka,Mark Bettner ,Joseph Carcello

تمرين 10

Computing Earnings per Share: Effect of Preferred Stock
The net income of Foster Furniture, Inc., amounted to $1,920,000 for the current year.
a.ompute the amount of earnings per share assuming that the shares of capital stock outstand­ing throughout the year consisted of:
1.00,000 shares of $1 par value common stock and no preferred stock.
2.00,000 shares of 8 percent, $100 par value preferred stock and 300,000 shares of $5 par value common stock.
b.s the earnings per share figure computed in part a(2) considered to be basic or diluted Explain.