accounting exercise and need the explanation and answer to help me learn.
Exercise 19-14 (Algo) EPS; stock dividend; nonconvertible preferred stock [LO19-5, 19-6, 19-7]
Hardaway Fixtures’ balance sheet at December 31, 2023, included the following:
Shares issued and outstanding:
Common stock, $1 par $ 1,140,000
Nonconvertible preferred stock, $50 par 15,000
On July 21, 2024, Hardaway issued a 25% stock dividend on its common stock. On December 12, it paid $90,000 cash dividends on the preferred stock. Net income for the year ended December 31, 2024, was $5,400,000.
REQUIRED:
Compute Hardaway’s earnings per share for the year ended December 31, 2024.
Note: Do not round intermediate calculations. Enter your answers in thousands (i.e., 10,000 should be entered as 10).
Requirements: 250 | .doc file