Hornet Motors reported $535,000 net income for the current year.Beginning common shares outstanding were 120,000.Hudson also had 10,000,6% nonconvertible,cumulative,$100 par value preferred shares outstanding for the entire year.No cash dividends were declared but Hornet did declare and distribute a 10% stock dividend on common shares on July 1.Compute basic earnings per share.

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The Answer of Hornet Motors reported $535,000 net income for the current year.Beginning common shares outstanding were 120,000.Hudson also had 10,000,6% nonconvertible,cumulative,$100 par value preferred shares outstanding for the entire year.No cash dividends were declared but Hornet did declare and distribute a 10% stock dividend on common shares on July 1.Compute basic earnings per share.

Hornet Motors Reported $535,000 Net Income for the Current Year