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Sugarland Industries Reported a Net Income of $750,750 on December

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Essay

Sugarland Industries reported a net income of $750,750 on December 31,2016.At the beginning of the year,the company had 500,000 common shares outstanding.On April 1,the company sold 27,000 shares for cash.On August 31,the company issued 48,000 additional shares as part of a merger.
Required:
Compute Sugarland's net income that would produce a basic EPS of $2.00 per share for 2016.


Definitions:

Partial Equilibrium

An analysis in economics focusing on the equilibrium of a specific sector or market without considering the whole economy.

Equity

The value that would be returned to shareholders if a company's assets were liquidated and all its debts repaid.

Least Possible Cost

The minimum expenditure necessary to achieve a specific outcome or produce a given quantity of a good.

Input Markets

Marketplaces where firms buy resources, goods, and services necessary for producing their own products or services.

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