Exercise NO: 21

At January 1, 2014, Langley Company’s outstanding shares included the following.\n280,000 shares of $50 par value, 7% cumulative preferred stock 900,00

At January 1, 2014, Langley Company’s outstanding shares included the following.

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280,000 shares of $50 par value, 7% cumulative preferred stock 900,000 shares of $1 par value common stock  Net income for 2014 was $2,530,000. No cash dividends were declared or paid during 2014. On February 15, 2015, however, all preferred dividends in arrears were paid, together with a 5% stock dividend on common shares. There were no dividends in arrears prior to 2014.

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On April 1, 2014, 450,000 shares of common stock were sold for $10 per share, and on October 1, 2014,

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110,000 shares of common stock were purchased for $20 per share and held as treasury stock.

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Instructions

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Compute earnings per share for 2014. Assume that financial statements for 2014 were issued in March 2015.

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Snider Corporation, a publicly traded company, is preparing the interim financial data which it will issue to its shareholders at the end of the first

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