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The stockholders’ equity section of Hendly Corporation appears below as of December 31, 2017. Net income for 2017 reflects a total effective tax rate of 34%. Included in the net income figure is a loss of S 18,000,000 (before tax) as a result of a non-recurring major casualty. Preferred stock dividends of $360,000 were declared and paid in 2017. Dividends of $1,000,000 were declared and paid to common stockholders in 2017. Instructions Compute earnings per share data as it should appear on the income statement of Hendly Corporation.
Expert Answer
| Particulars | Amount |
| Net Income | 33,000,000.00 |
| Add: Dividend Paid to preference holders | 360,000.00 |
| Add: Dividend Paid to common stock holders | 1,000,000.00 |
| Net Income after taxes | 34,360,000.00 |
| Add: Tax Amount (4660000) / 66% x 34% | 17,700,606.06 |
| Net Income before taxes | 52,060,606.06 |
| Less: Extra ordinary loss | 18,000,000.00 |
| Net Income before tax | 34,060,606.06 |
| Less: Tax at 34% | 11,580,606.06 |
| Net Income after taxes | 22,480,000.00 |
| Less: Prefrence dividend | 360,000.00 |
| Income available for common stockholders (A) | 22,120,000.00 |
| Outstanding shares (B) | 10,000,000.00 |
| Earning per share (A/B) | 2.21 |
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Question & Answer: The stockholders' equity section of Hendly Corporation appears below as of December 31, 2017. Net income for 2017 reflects a to…..
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