Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. for the year ended december 31, 2018, norstar indu

For the year ended December 31, 2018, Norstar Industries reported net income of $655,000. At January...

60.1K

Verified Solution

Question

Accounting

For the year ended December 31, 2018, Norstar Industriesreported net income of $655,000. At January 1, 2018, the companyhad 900,000 common shares outstanding. The following changes in thenumber of shares occurred during 2018:
  

Apr.30Sold 60,000 shares in a public offering.
May24Declared and distributed a 5% stock dividend.
June1Issued 72,000 shares as part of the consideration for thepurchase of assets from a subsidiary.


Required:

Compute Norstar's earnings per share for the year ended December31, 2018. (Enter your answers in thousands.)

This is what I have calculated and it is incorrect. Pleasehelp.

Weighted average number of shares - Jan 1              900,000
Weighted average number of shares - Apr 30                40,000(60000*(8/12)
Weighted average of stock dividend shares distributed -May 24                47,000(900000+C13)*5%
Weighted average of stock dividend shares distributed -June 30                42,00072000*7/12
Total weighted average number of shares          1,029,000
Earnings per share =                   0.637

Answer & Explanation Solved by verified expert
4.3 Ratings (545 Votes)
    See Answer
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

1. Carlsbad Corporation's sales are expected to increase from $5 million in 2016 to $6 million...

Finance
Q

For many, the idea of 'accounting regulation' is a fairly boring, mundane topic. It is something...

Accounting
Q

DETERMINING THE RHEOLOGICAL PROPERTIES OF ASPHALT BINDER USING DYNAMIC SHEAR RHEOMETER I need Introduction The equipment we will use...

Civil Engineering
Q

TIM A triangle has angles that measure 30 60 and 90 The hypotenuse of the...

Geometry
Q

How many different nth roots does a nonzero complex number have The number 81 has...

Basic Math
Q

Give the following number in Base 10.62 8 = [?]10Enter the number that belongs in...

Basic Math
Q

Sketch the curve given by the set of parametric equations.X=t+4y=t/5+8

Basic Math
Q

12 4 Points A magazine reported the following information for Ph D degrees awarded by...

Statistics
Q

During 2010, a company provides services of $400,000 on account. Of this amount, $50,000...

Accounting
Q

HB 358 Individual Assignment #2 NAME: Spartan Hotel Information You have been assigned to prepare...

Finance
Q

Pricing Strategy, Sales Variances Eastman, Inc., manufactures and sells three products: R, S, and T....

Accounting
Q

Suppose a seven-year, $1,000 bond with a 7.8% coupon rate and somiannual coupons is trading...

Finance