At December 31, 2017, Crane Company had 600,000 shares of common stock issued and outstanding, 400,000 of which had been issued and outstanding throughout the year and 200,000 of which were issued on October 1, 2017. Net income for 2017 was $2,070,000, and dividends declared on preferred stock were $380,000.Compute Sarasota’s earnings per common share. (Round answer to 2 decimal places, e. g. 52.75.)

Sarasota’s earnings per common share is $2.82

Explanation:

Earning per share is the measurement of earning attributed to the common stockholders of the company for each share of the company.

Number of outstanding shares = 400,000

Issued during the year = 200,000

Total outstanding shares = 400,000 + 200,000 = 600,000 shares

Net income for the year = $2,070,000

Earning per share = ( Net income - Preferred Dividend ) / Number of outstanding shares

Earning per share = ( $2,070,000 - $380,000 ) / 600,000 shares = $1,690,000 / 600,000  shares = $2.82 per share

both are integral parts of a corporate balance sheet. the cash flow statement, or statement of cash flows, measures the sources of a company's cash and its uses of cash over a specific time period. the income statement measures a company's financial performance, such as revenues, expenses, profits or losses over a specific time period (in fact, it's sometimes called a statement of financial performance).

a cash flow statement shows exactly how much money a company has received and how much it has spent, traditionally over a period of one month. it captures the current operating results and changes on the balance sheet, such as increases or decreases in accounts receivable or accounts payable, and does not include noncash accounting items such as depreciation and amortization. the cash flow generally comes from revenue received as a result of business activity, but it may be augmented by funds available as a result of credit. a cash flow statement is used to determine the short-term viability and liquidity of a company, specifically how well it is positioned to pay its bills and vendors.

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