At December 31, 2019, Shiga Naoya Corporation had the following stock outstanding.
10% cumulative preferred stock, $100 par, 107,500 shares $10,750,000
Common stock, $5 par, 4,000,000 shares 20,000,000
During 2020, Shiga Naoya did not issue any additional common stock. The following also occurred during 2020.
Income from continuing operations before taxes $23,650,000
Discontinued operations (loss before taxes) $ 3,225,000
Preferred dividends declared $ 1,075,000
Common dividends declared $ 2,200,000
Effective tax rate 17%
Required:
1. Compute earnings per share data as it should appear in the 2020 income statement of Shiga Naoya Corporation. (Round to two decimal places.)

The earnings per share data as it should appear in the 2020 income statement of Shiga Naoya Corporation is given below.

Explanation:

Net income:

Income from continuing

operation before income tax                                                        $23,650,000

Income tax (17% * 23,650,000)                                                         4,020,500

Income from continuing operations                                                19,629,500

Discontinued operations

       Loss before taxes                                            3,225,000

       Less applicable income tax (17%)                     548,250          2,676,750

Net income                                                                                        16,952,750

Preferred dividends declared                                                            1,075,000

Weighted average common shares outstanding                            4,000,000

Earnings per share:

Income from continuing operations

($19,629,500 - $ 1,075,000)/4,000,000                                               $4.63

Discontinued operations, net of tax

($2,676,750/4,000,000)                                                                        (0.66)                                                        

Net income

($16,952,750 - $1,075,000)/4,000,000                                                $3.96

almost done 23 out of 25

1   all nations face the problem of scarcity because there are limited resources and unlimited wants. nations do not have enough factors of production to produce everything that their population wants. entrepreneurial resources initiate businesses to make new goods and services; labor resources produce goods and services.

2 there are four factors of production: natural resources, labor resources, capital resources, and entrepreneurial resources. natural resources are raw materials from nature that are used to produce goods. trees, water, and grains are natural resources. some natural resources, such as wheat and cattle, are renewable

3 wants

things that you do not need to have in order to survive, but would like to have

needs

things that you must have in order to survive

goods

physical products

services

tasks that a business perform for customers

resources

items that people can use to make or obtain what they need or want

determine

to settle or decide by choice of alternatives or possiblities

4 i really dont know