At December 31, 2020 Rice Company had 300000 shares of common stock and 10000 shares of 6%, $100 par value cumulative preferred stock outstanding. No dividends were declared on either the preferred or common stock in 2020 or 2021. On January 30, 2022, prior to the issuance of its financial statements for the year ended December 31, 2021, Rice declared a 100% stock dividend on its common stock. Net income for 2021 was $1140000. In its 2021 financial statements, Rice's 2021 earnings per common share should be

$1.80 per share

Explanation:

The computation of the earning per share is shown below:

Earning per share = (Net income - preference dividend) ÷ (weightage number of outstanding shares)

where,

Net income is = $1,140,000

Preference dividend is

= 10,000 × $100 × 6%

= $60,000

Weighted number of shares is

= 300,000 shares + 300,000 shares as 100% stock dividend is declared

= 600,000 shares

So the earning per share is

= ($1,140,000 - $60,000) ÷ (600,000 shares)

= $1.80 per share

We simply applied the above formula

answer; i do believe that the correct answer is ; ///are valued more highly than their cost;

a manufacturer of printed circuit boards uses exponential smoothing with trend to forecast monthly demand of its product. at the end of december, the company wishes to forecast sales for january. the estimate of trend through november has been 200 additional boards sold per month. average sales have been around 1000 units per month. the demand for december was 1100 units. the company uses α = 0.20 and β = 0.10. make a forecast including trend for the month of january.