Snyder Home Products,a manufacturer of sinks,bath tubs,and faucets,reported the following information (all dollar amounts in thousands of dollars)for December 31,2014,in a draft version of its consolidated statement of income:

Required:
1.Estimate the average number of common shares outstanding for 2014.Assume that company has outstanding the entire year $108 thousand of $2 convertible preferred stock,par value $2.50,five million shares authorized.Indicate any assumptions you make.
2.Does Snyder have a simple or complex capital structure?
3.Why is only one earnings per share figure reported for Snyder?
4.Is Snyder required to show the $1.22 and ($.23)amounts?

Question

Snyder Home Products,a manufacturer of sinks,bath tubs,and faucets,reported the following information (all dollar amounts in thousands of dollars)for December 31,2014,in a draft version of its consolidated statement of income:
  
Required:
1.Estimate the average number of common shares outstanding for 2014.Assume that company has outstanding the entire year $108 thousand of $2 convertible preferred stock,par value $2.50,five million shares authorized.Indicate any assumptions you make.
2.Does Snyder have a simple or complex capital structure?
3.Why is only one earnings per share figure reported for Snyder?
4.Is Snyder required to show the $1.22 and ($.23)amounts?

Quizplus · Accepted Answer

The Answer of Snyder Home Products,a manufacturer of sinks,bath tubs,and faucets,reported the following information (all dollar amounts in thousands of dollars)for December 31,2014,in a draft version of its consolidated statement of income:
  
Required:
1.Estimate the average number of common shares outstanding for 2014.Assume that company has outstanding the entire year $108 thousand of $2 convertible preferred stock,par value $2.50,five million shares authorized.Indicate any assumptions you make.
2.Does Snyder have a simple or complex capital structure?
3.Why is only one earnings per share figure reported for Snyder?
4.Is Snyder required to show the $1.22 and ($.23)amounts?

Snyder Home Products,a Manufacturer of Sinks,bath Tubs,and Faucets,reported the Following