Charles Austin of the controller’s office of Thompson Corporation was given the
ID: 2455553 • Letter: C
Question
Charles Austin of the controller’s office of Thompson Corporation was given the assignment of determining the basic and diluted earnings per share values for the year ending December 31, 2015. Austin has compiled the information listed below.
Price per Share
The following specific activities took place during 2015.
(Q.) Compute the adjusted net income to be used as the numerator in the basic earnings per share calculation for the year ended December 31, 2015.
Open Show Work
1. The company is authorized to issue 7,608,000 shares of $10 par value common stock. As of December 31, 2014, 1,902,000 shares had been issued and were outstanding. 2. The per share market prices of the common stock on selected dates were as follows.Explanation / Answer
Net Income After Tax 122,00,000 Cumulative Dividend per preference share at the end of 2014 3 Issue date of Preference Shares Jul 01 2014 Dividend Per Quarter 1.5 Total Cumulative dividend of preference shares Cumulative dividend on converted preference shares =Pending No of Quartes* Dividend Per Qtr* No of Shares 20,30,400.00 Cumulative dividend on unconverted preference shares =Pending No of Quartes* Dividend Per Qtr* No of Shares 18,57,600.00 Total Cumulative Preference dividend 38,88,000.00 Adjusted Income 83,12,000.00