Lewis,Inc.began the year with 300,000 shares of common stock and 25,000 shares of 6%,$100 par value,cumulative,convertible preferred stock.Each share of preferred stock is convertible into 4 shares of common stock.On June 30,it purchased 10,000 shares of treasury stock.On November 1,Lewis declared a 2 for 1 stock split.Net income for the year was $850,000.Compute weighted average shares of common stock for the year,basic EPS,and diluted EPS.
Instructions: Write the EPS formula.Show all computations used in your solution.

Question

Quizplus · Accepted Answer

The Answer of Lewis,Inc.began the year with 300,000 shares of common stock and 25,000 shares of 6%,$100 par value,cumulative,convertible preferred stock.Each share of preferred stock is convertible into 4 shares of common stock.On June 30,it purchased 10,000 shares of treasury stock.On November 1,Lewis declared a 2 for 1 stock split.Net income for the year was $850,000.Compute weighted average shares of common stock for the year,basic EPS,and diluted EPS.
Instructions: Write the EPS formula.Show all computations used in your solution.

Lewis,Incbegan the Year with 300,000 Shares of Common Stock and 25,000