On January 1, 2018, Shamu Corporation Had 100,000 Shares of Common

question 147

Essay

On January 1, 2018, Shamu Corporation had 100,000 shares of common stock outstanding. The following transactions occurred during 2018: The following transactions occurred during 2019: Required:
Calculate Shamu's basic earnings per share (rounded to 2 decimal places) for both years for presentation in comparative financial statements that will be prepared at the end of 2019.

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Definitions:

Average Inventory

An accounting metric that estimates the value or quantity of a company's inventory over a specified time period.

Carrying Cost

Carrying cost refers to the total cost of holding inventory, including storage, insurance, taxes, opportunity costs, and depreciation.

Order Cost

The administrative and logistical expenses associated with making and processing an order for goods or services.

Economic Order Quantity

An inventory management formula that determines the ideal order size to minimize the costs of holding and ordering inventory.