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OVERVIEW OF EARNING PER SHARE CALCULA On January 1, Simpleton's capital structure consisted on 50,000 shares of $10 par common stock and 1,000 shares of 9%, $100 par cumulative preferred stock (one year of dividends in arrears). On April 1, Simpleton issued 3,000 additional common shares. On July 1, the firm issued a three for one stock split . On September 1, 4,500 shares of common stock were purchased for the treasury and on October 1, 3,000 shares were resold from the treasury. Net income for the year ended December 31, was $294,480. No dividends were declared during the year. 3 Is Preferred stock is convertible (ishore = 15 shares Repeat A&B A & B assuming that the Preferred Stock is non-comolative OVERVIEW OF EARNING PER SHARE CALCULA On January 1, Simpleton's capital structure consisted on 50,000 shares of $10 par common stock and 1,000 shares of 9%, $100 par cumulative preferred stock (one year of dividends in arrears). On April 1, Simpleton issued 3,000 additional common shares. On July 1, the firm issued a three for one stock split . On September 1, 4,500 shares of common stock were purchased for the treasury and on October 1, 3,000 shares were resold from the treasury. Net income for the year ended December 31, was $294,480. No dividends were declared during the year. 3 Is Preferred stock is convertible (ishore = 15 shares Repeat A&B A & B assuming that the Preferred Stock is non-comolative