Calculate earnings per share

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Question 1 - Explain the difference between cumulative and non-cumulative preferred shares.

Question 2 - Calculate earnings per share for 2020 based on the following data. (Be sure to include all calculations and name each answer clearly)

Income for the year 2020 $ 806,000

At the end of 2019, the total of common shares outstanding was 1,855,000, par value of $1

At the beginning of January 110,000 common shares were repurchased and withdrawn.

During both years the company had 5,000 preferred shares circulating with an annual dividend of $ 500. In 2020 it also had in circulation from 1/1 a total of 500,000 convertible options into 250.00 common shares.

Reference no: EM132619440

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