1. Business
  2. Accounting
  3. the net income of foster furniture inc amounted to 1800000...

Question: the net income of foster furniture inc amounted to 1800000...

Question details

The net income of Foster Furniture, Inc., amounted to $1,800,000 for the current year. a. Compute the amount of earnings per share assuming that the shares of capital stock outstanding throughout the year consisted of: 1. 400,000 shares of $1 par value common stock and no preferred stock. 2. 100,000 shares of 8 percent, $100 par value preferred stock and 300,000 shares of $5 par value common stock. b. Is the earnings per share figure computed in part a(2) considered to be basic or diluted?

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