wiley plus

FratBro23
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Business & Finance
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Question description

On January 1, 2012, Bailey Industries had stock outstanding as follows.

6% Cumulative preferred stock, $116 par value,
 issued and outstanding 10,500 shares

$1,218,000

Common stock, $10 par value, issued and
 outstanding 202,800 shares

2,028,000


To acquire the net assets of three smaller companies, Bailey authorized the issuance of an additional 271,200 common shares. The acquisitions took place as shown below.

Date of Acquisition

Shares Issued

Company A April 1, 2012

105,600

Company B July 1, 2012

124,800

Company C October 1, 2012

40,800


On May 14, 2012, Bailey realized a $140,400 (before taxes) insurance gain on the expropriation of investments originally purchased in 2000.

On December 31, 2012, Bailey recorded net income of $312,000 before tax and exclusive of the gain.

Assuming a 42% tax rate, compute the earnings per share data that should appear on the financial statements of Bailey Industries as of December 31, 2012. Assume that the expropriation is extraordinary. (Round answer to 2 decimal places, e.g. $2.55.)

Bailey Industries
Income Statement
For the year ended December 31, 2012

Dividends Expenses Extraordinary Loss per share Extraordinary Gain per share Income Before Extraordinary Item Income From Continuing Operations Income Per Share Before Extraordinary Item Loss From Discontinued Operations Net Income / (Loss) per share Retained Earnings, January 1 Retained Earnings, December 31 Revenues Total Expenses Total Revenues

$

Dividends Expenses Extraordinary Loss per share Extraordinary Gain per share Income Before Extraordinary Item Income From Continuing Operations Income Per Share Before Extraordinary Item Loss From Discontinued Operations Net Income / (Loss) per share Retained Earnings, January 1 Retained Earnings, December 31 Revenues Total Expenses Total Revenues

Dividends Expenses Extraordinary Loss per share Extraordinary Gain per share Income Before Extraordinary Item Income From Continuing Operations Income Per Share Before Extraordinary Item Loss From Discontinued Operations Net Income / (Loss) per share Retained Earnings, January 1 Retained Earnings, December 31 Revenues Total Expenses Total Revenues

$


Tutor Answer

(Top Tutor) Daniel C.
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School: Cornell University
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