Accounting 2
E13-17 Compute earnings per share under differentassumptions:
At December 31, 2014 Millwood Corporation has 2,000 shares of$100 par value, 8% preferred stock outstanding and 100,000 sharesof $10 par value common stock issues. Millwoods net income for theyear is $241,000.
Instructions: Compute the earnings per share of common stockunder the following independent situations:
a. The dividend to preferred stockholders was declared. Therehas been no change in the number of shares of common stockoutstanding during the year.
b. The dividend to preferred stockholders was not declared. Thepreferred stock is cumulative. Millwood held 10,000 shares oftreasury stock throughout the year.
I reviewed the previous answers to this question. Part a Iunderstand, but part b. there are conflictual answers on yourwebstite. Can you show me part b step by step and explaincumulative
