Weighted Average shares On may 28, 2005, the corporation issues 5,000 shares of common stock; on August 3, it issues a 20%o Stock dividend and on october 5. it issues 2.005 shares of stock 2004 Data on 2004 Statement Months shares Shares Fraction of Year Equivalent Are Outstanding Outstanding X Outstanding Whole units January-December 5.000 12/12 5.000 5,000x 200%x 120%=12,000 equivalent whole units Continued
On May 28, 2005, the corporation issues 5,000 shares of common stock; on August 3, it issues a 20% stock dividend; and on October 5, it issues 2,005 shares of stock. Months Shares Shares Fraction of Year Equivalent Are Outstanding Outstanding Outstanding Whole Units x = January-December 5,000 x 12/12 = 5,000 2004 Data on 2004 Statement 5,000 x 200% x 120% = 12,000 equivalent whole units Continued Intermediate Accounting 14 Earnings Per Share And Retained Earnings Weighted Average Shares
Weighted Average shares 2005 Data on 2001 Statement Months shares Sl hares Fraction of Year_ Equivalent Are Outstanding Outstanding ⅹ Outstanding Whole units January-may 10.000 June-July 15000 Issued 5.000 shares Issued 20% stock dividend August-September 18,000
2005 Data on 2001 Statement Months Shares Shares Fraction of Year Equivalent Are Outstanding Outstanding Outstanding Whole Units x = January-May 10,000 June-July 15,000 August-September 18,000 Issued 5,000 shares Issued 20% stock dividend Intermediate Accounting 14 Earnings Per Share And Retained Earnings Weighted Average Shares
Weighted Average shares 2005 Data on 2005 Statement Months shares Shares Fraction of Year equivalent Are Outstanding Outstanding Outstanding Whole units January-may 12,000 Increases 20%o June-July 18.000 Increases 20% August-September 18,000 October-December 20.000
2005 Data on 2005 Statement Months Shares Shares Fraction of Year Equivalent Are Outstanding Outstanding Outstanding Whole Units x = January-May 10,000 June-July 15,000 August-September 18,000 12,000 Increases 20% 18,000 Increases 20% October-December 20,000 Intermediate Accounting 14 Earnings Per Share And Retained Earnings Weighted Average Shares
Weighted Average shares 2005 Data on 2001 Statement Assumed Shares Shares Fraction of Year Equivalent Outstanding Outstanding Outstanding Whole Units January-may 12,000 5/12 5.000 June-July 18.000 2/12 3.000 August-September 18,000 xxxx 2/12 3.000 October-December 20.000 3/12 5.000 16.000
2005 Data on 2001 Statement Assumed Shares Shares Fraction of Year Equivalent Outstanding Outstanding Outstanding Whole Units x = January-May 10,000 June-July 15,000 August-September 18,000 12,000 18,000 October-December 20,000 x 5/12 = 5,000 x 2/12 = 3,000 x 2/12 = 3,000 x 3/12 = 5,000 16,000 Intermediate Accounting 14 Earnings Per Share And Retained Earnings Weighted Average Shares
2. Diluted Earnings Per Share A corporation with a complex capital structure is required to report two ar Yes... basic earnings Its ince per share and diluted earnings per share
2. Diluted Earnings Per Share A corporation with a complex capital structure is required to report two amounts on the face of its income statement. Yes… basic earnings per share and diluted earnings per share. Intermediate Accounting 14 Earnings Per Share And Retained Earnings