Solved: How shares of common stock were outstanding, Accounting Basics

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How shares of common stock were outstanding

Problem:

Teddy Bears Inc had $500,000 of retained earnings on Dec 31, 2010. The company paid common dividends of $20,000 and had retained earnings of $300,000 on Dec 31, 2009. How much did Teddy Bears Inc earn in 2010 and what would the earnings per share be if $40,000 shares of common stock were outstanding?

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Accounting Basics: How shares of common stock were outstanding

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Accounting Basics: How shares of common stock were outstanding

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