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

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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.


Definitions:

Economic Growth

An increase in the production of goods and services in an economy over a period of time, indicative of a healthy economy.

Primary Shopper

The individual in a household or entity who is responsible for the majority of shopping decisions and purchases.

Disposable Income

The amount of income left for spending or saving after taxes have been deducted.

Psychosocial Factors

Elements that involve psychological and social aspects influencing individual behavior and well-being.

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