Flyaway Travel Company reported net income for 2021 in the amount of $101,000. During 2021, Flyaway declared and paid $3,225 in cash dividends on its nonconvertible preferred stock. Flyaway also paid $21,000 cash dividends on its common stock. Flyaway had 51,000 common shares outstanding from January 1 until 21,000 new shares were sold for cash on April 1, 2021. What is 2021 basic earnings per share

The basic EPS for Flyaway in 2021 is $1.4648 per share

Explanation:

The basic earnings per share or basic EPS is the amount of earnings that are allocable to the common stockholders expressed in terms of per share earnings. The basic EPS is calculated by dividing the Net Income after adjusting for preferred stock dividends by the amount of weighted average number of common share outstanding during the Year. Thus, the formula for Basic EPS is,

Basic EPS = (Net Income - Preferred stock dividends) / Weighted average number of common shares outstanding

Weighted average number of common share outstanding during the year for Flyaway is = 51000 + 21000 * 9/12  =  66750 shares

Basic EPS = (101000 - 3225) / 66750  

Basic EPS = $1.4647 per share

whole quiz

1. the sum of all activities involved in getting high-quality products into the marketplace

2.operations

3. the principle of looking at the supply chain as a whole in order to improve the overall flow through the system.

4. produced; performed

5. activities producing tangible products, such as radios, newspapers, buses, and textbooks.

6. activities producing intangible and tangible products, such as entertainment, transportation, and education.

7.   customer focus

8. analyzing a competitor's products to identify desirable improvements

9. the systematic direction and control of the processes that transform resources into finished projects that create value for and provide benefits to consumers.

10. operation management.

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