Question

Can you solve this?

For several years Orbon Incorporated has followed a policy of paying a cash dividend of $0.46 per share and having a 3% stock dividend. In the 2023 annual report, Orbon reported restated earnings per share for 2021 of $1.01.

Required:
Calculate the originally reported earnings per share for 2021.

Calculate the restated cash dividend per share for 2021 reported in the 2023 annual report for comparative purposes.

Note: For all requirements, do not round intermediate calculations. Round your answer to 2 decimal places.

Answer 1

To calculate the originally reported earnings per share for 2021, subtract the cash dividend and the stock dividend from the restated earnings per share. The originally reported earnings per share for 2021 is $0.52. To calculate the restated cash dividend per share for 2021 reported in the 2023 annual report, subtract the stock dividend from the cash dividend. The restated cash dividend per share for 2021 reported in the 2023 annual report is $0.43.

Step-by-step explanation:

To calculate the originally reported earnings per share for 2021, we need to subtract the cash dividend and the stock dividend from the restated earnings per share.

First, let's calculate the stock dividend per share: (3% / 100) * $1.01 = $0.0303.

Next, subtract the cash dividend and the stock dividend from the restated earnings per share: $1.01 - $0.46 - $0.0303 = $0.52.

Therefore, the originally reported earnings per share for 2021 is $0.52.

To calculate the restated cash dividend per share for 2021 reported in the 2023 annual report, we need to subtract the stock dividend from the cash dividend: $0.46 - $0.0303 = $0.4297.

Therefore, the restated cash dividend per share for 2021 reported in the 2023 annual report is $0.43.