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+--- Thread: Calculating EPS on Discontinued Operations (/showthread.php?tid=19683)
Calculating EPS on Discontinued Operations - Canadian Kid - 09-23-2014
Hi, I'm studying accounting and I can't figure out how to calculate the Discontinued Operations Earnings per Share on the Statement of Comprehensive Income Statement. I figured out Income from Continuing Operations and Net Income by using this formula:
(Net Income - Preferred Dividends)/ # of common shares outstanding.
This formula gave me the correct answer for Net Income and Income from Continuing Operations but when I plug in Discontinued operations, I get the wrong answer.
The EPS is 0.67. Discontinued Operations is listed as Loss from Disposal: 250,000 (net of tax $62,500), Loss from Operations: 150,000(net of tax $37,500) for a total of 400,000.
Preferred dividend = 50,000
Common dividend = 200,000
Total outstanding common shares for year = 600,000
Any help is appreciated!
RE: Calculating EPS on Discontinued Operations - tazammal - 09-29-2014
Hi, I'm studying accounting and I can't figure out how to calculate the Discontinued Operations Earnings per Share on the Statement of Comprehensive Income Statement. I figured out Income from Continuing Operations and Net Income by using this formula:
(Net Income - Preferred Dividends)/ # of common shares outstanding.
RE: Calculating EPS on Discontinued Operations - blue_oceans79 - 12-24-2014
EPS from discontinued operations shall be straight forward.
earning/loss from discontinued operations/number of shares.