Martinez Company had 210000 shares of common stock outstandi

Martinez Company had 210,000 shares of common stock outstanding on December 31, 2018. During the year 2019, the company issued 8,000 shares on May 1 and retired 14,000 shares on October 31. For the year 2019, Martinez Company reported net income of $271,100 after a loss from discontinued operations of $41,000 (net of tax).

What earnings per share data should be reported at the bottom of its income statement?

Solution

Weighted average shares outstanding = 210000+(8000/12*8)-(14000/12*2)= 213000 Earnings per share = Net income/Weighted average shares outstanding = 271100/213000= 1.27