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    Net income and earnings per share calculation

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    During the year ended December 31, 2011, Gluco, Inc., split its stock on a 3-for-1 basis. In its annual report for 2010, the firm reported net income of $3,703,920 for 2010, with an average 268,400 shares of common stock outstanding for that year. There was no preferred stock.

    Required:
    (a) What amount of net income for 2010 will be reported in Gluco's 2011 annual report?

    Net income: $_______

    (b) Calculate Gluco's earnings per share for 2010 that would have been reported in the 2010 annual report. (Round your answer to 2 decimal places)

    Earnings per share $: ________

    (c) Calculate Gluco's earnings per share for 2010 that will be reported in the 2011 annual report for comparative purposes. (Round your answer to 2 decimal places)

    Earnings per share $: _________::

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    Solution Summary

    The solution calculatee net income and earnings per share.

    $2.19

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