Nagy Industries Reported a Net Income of $619,369 on December

question 93

Essay

Nagy Industries reported a net income of $619,369 on December 31, 2013. 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. On December 1, 2013, the company declared and issued a 10% stock dividend.
Required:
Compute Nagy's net income that would produce a basic EPS of $2.00 per share for 2013.

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Definitions:

Petty Cash Fund

A small amount of cash on hand used for paying minor expenses, managed through a system of replenishment.

Misc. Expense

Miscellaneous Expenses, generally small or irregular costs that don't fit into other categories of a company's financial statements.

Petty Cash Fund

A small amount of cash kept on hand for minor, incidental expenses.

Replenishment

The process of replenishing inventory or stock to ensure that the optimal inventory level is maintained.