Question: On Jan 1, 2021, Gulf Company had 700,000 shares of common stock outstanding. During...
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Question: On Jan 1, 2021, Gulf Company had 700,000 shares of common stock outstanding. During 2021, it had the following transactions that affected the common stock account:
1/4/2021
1:
Issued 20,000 Shares.
1/5/2021
1:
Issued a 25% stock dividend.
1/8/2021
1:
Acquired 150,000 share of treasury stock.
1/11/2021
1:
Issued a 3-for-1 stock split.
1/12/2021
1:
Reissued 80,000 shares of treasury stock.
Instructions:
Determine the weighted-average number of shares outstanding as of December 31, 2021.
Assume the net income of the company is $5000,000 and the preferred dividends $100,000. Compute EPS.
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