90.2K

Verified Solution

Link Copied!

Richetti Inc.s shareholders equity accounts were as follows at the beginning of the current fiscal year, August 1, 2017:

$1 noncumulative preferred shares (103,000 shares issued)		$2,575,000
Common shares (337,000 shares issued)		3,370,000
Retained earnings		2,420,000
Total shareholders equity		$8,365,000

During the year, the following selected transactions occurred:

Oct.	1		Reacquired 22,800 common shares for $19 per share.
Dec.	1		Issued 54,600 common shares for $24 per share.
Feb.	1		Issued 9,600 common shares for $25 per share.
June	20		Declared the annual preferred cash dividend to shareholders of record on July 10, payable on July 31.
July	31		Net income for the year ended July 31, 2018, was $1,212,000.

Incorrect answer iconYour answer is incorrect.

Calculate the weighted average number of common shares for the year.

Weighted Average Number of Shares

eTextbook and Media

New attempt is in progress. Some of the new entries may impact the last attempt grading.Your answer is incorrect.

Calculate the basic earnings per share. (Round answer to 2 decimal place e.g. 5.25.)

Basic Earnings per Share

$

eTextbook and Media

Incorrect answer iconYour answer is incorrect.

Would your answer to the basic earnings per share calculated above change if the preferred share dividend had not been declared on June 20? (Round answer to 2 decimal place e.g. 5.25.)

Basic Earnings per Share

Answer & Explanation Solved by verified expert

See Answer