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A year ago
Sumner Industries began the year with 140,000 shares of common stock and 10,000 shares of 6%, $100 par value, cumulative, nonconvertible preferred stock. On April 1 it declared a 10% stock dividend on common shares.  On June 1, it purchased 15,000 shares of treasury stock. On December 1, Sumner declared a 2 for 1 stock split.  Net income for the year was $570,000.  Compute weighted average shares of common stock for the year and basic EPS.

Instructions:  Write the EPS formula.  Show all computations used in your solution.
Textbook 

Intermediate Accounting

Edition: 1st
Authors:
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A year ago
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EPS =  

EPS =  

EPS =  

EPS = $1.76

Weighted-Average Shares Outstanding:
Weighted
Number ofNumber ofWeighted Avg.
SharesMonthsShares
DateEventOutstandingOutstandi ngOutstanding
January 1Beginning Balance     140,000      12/12    140,000
Retroactive
April 110% Stock Dividend         .10application         .10
Subtotal after Stock Dividend     154,000     154,000
June 1Purchased 15,000 Treasury Shares     (15,000)         7/12       (8,750)
Subtotal after Purchase     139,000     145,250
December 12-1 Stock Split           2           2
December 31  Balance     278,000     290,500

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A year ago
Enough said, this helped my grade so much
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A year ago
Perfect
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