Traditional Bathrooms Inc

Traditional Bathrooms Inc.(TBI)had 80,000 ordinary shares outstanding on January 1,2017.Transactions throughout 2017 affecting its shareholdings follow.
• February 1: TBI issued 200,000,$10,cumulative 10% preferred shares.
• March 1: TBI issued 40,000 ordinary shares.
• April l: TBI declared and issued a 8% stock dividend on the ordinary shares.
• July 1: TBI repurchased and cancelled 30,000 ordinary shares.
• October 1: TBI declared and issued a 3-for-l stock split on the ordinary shares.
• December 31: TBI declared $99,600 in dividends on the ordinary shares.
• Net income for the year ended December 31,2017 was $600,000.Its tax rate was 40%.
Required:
a.What was weighted average number of ordinary shares outstanding in 2017?
b.What was basic EPS in 2017?
c.If the preferred shares issued on February 1,2017 were non-cumulative,what would basic EPS for 2017 have been?

Correct Answer:

Verified

_TB1321_00_TB1321_00_TB1321_00 Supportin...

View Answer

Unlock this answer now
Get Access to more Verified Answers free of charge

View Full Answer For Free