On January 1, 2015, Wilke Corp. had 521,000 shares of common stock

Question

On January 1, 2015, Wilke Corp. had 521,000 shares of common stock outstanding. During 2015, it had the following transactions that affected the Common Stock account.

February- issued 216,000 shares

March – issued a 10% stock dividend

May- Acquired 116,000 shares of treasury stock

June – issued a 3-for-1 stock split

October- reissued 64,000 shares of treasury stock

Determine the weighted-average number of shares outstanding as of December 31, 2015.

(1) The weighted-Average number of shares outstanding as of December 31, 2015

Assume that Wilke Corp. earned net income of $3,292,000 during 2015. In addition, it had 120,000 shares of 9%, $101 par nonconvertible, noncumulative preferred stock outstanding for the entire year. Because of liquidity considerations, however, the company did not declare and pay a preferred dividend in 2015. Compute earnings per share for 2015, using the weighted-average number of shares determined in part (a). (Round answer to 2 decimal places, e.g. $2.55.)

(2) Earnings Per share

Assume the same facts as in part (b), except that the preferred stock was cumulative. Compute earnings per share for 2015. (Round answer to 2 decimal places, e.g. $2.55.)

(3) Earnings Per Share

Assume the same facts as in part (b), except that net income included an extraordinary gain of $957,000 and a loss from discontinued operations of $449,000. Both items are net of applicable income taxes. Compute earnings per share for 2015. (Round answer to 2 decimal places, e.g. $2.55.)

Wilke Corp. Income Statement For the year ended December 31, 2015

(1) Income from continuing operations

(2) Loss from continued operations

(3) Income before extraordinary item

(4) Extraordinary Gain

(5) Net Income ?Loss