During the current year, High Corporation had 3 million shares of common stock outstanding. $5,000,000 of 6% convertible bonds were issued at face amount at the beginning of the year. High reported income before tax of $4 million and net income of $3 million for the year. The bonds are convertible into 625,000 shares of common. What is diluted EPS (rounded)? A. $0.89. B. $0.91. C. $1.00. D. $1.08
Q: company has annual sales of $120,000, average accounts payable of $35,000, and average accounts…
A: Days of sales outstanding is calculated by dividing number of days in a year by accounts receivable…
Q: Calculating the Predetermined Overhead Rate, Applying Overhead to Production At the beginning of the…
A: PREDETERMINED OVERHEAD RATEPredetermined rate means the indirect cost rate.Predetermined overhead…
Q: Rutland Business Services (RBS) provides miscellaneous consulting and services to local businesses.…
A: Revenue: Revenue, often referred to as sales or income, is the total amount of money earned by a…
Q: Mr. and Mrs. Fabrizio, a retired couple, decided to open a family restaurant. During March and…
A: Prepaid rent is an advance payment on a lease of property. If any one use the property for your…
Q: FRANKLIN COMPANY Income Statement For the Year Ended December 31, Year 1 Sales revenue (6,000 units…
A: The contribution margin is calculated as the difference between sales and variable costs. The…
Q: On November 1, 2023, Cheng Company (a U.S.-based company) forecasts the purchase of goods from a…
A: The rate at which one country’s currency can be converted into another country’s currency referred…
Q: A manufacturing company reports the following for the period: Inventories Raw materials Work in…
A: The cost of goods manufactured includes the cost of goods that are finished during the period. The…
Q: Nittany Company uses a periodic inventory system. At the end of the annual accounting period,…
A: Weighted Average Method is one of the methods of inventory valuation in which it is assumed that…
Q: The following information relates to Coronado Real Estate Agency. Oct. 1 2 3 6 27 30 James Coronado…
A: Journal entries are used by the management to record the transactions in the books of accounts.…
Q: Exercise 2-50 and 2-51 (Algo) (LO 2-6) Skip to question [The following information applies to the…
A: Product cost is the total cost incurred in the manufacturing of product during the period. It is the…
Q: me the following budgeted information for a merchandising company: Budgeted sales (all on credit)…
A: Cash budget is used in forecasting to determine supplier payment, and receipts from customers which…
Q: You have recently been appointed as auditor to Johnson Plc; a company whose shares are traded on the…
A: When a firm is appointed as an auditor to a company like Johnson Plc, several professional and…
Q: Required information [The following information applies to the questions displayed below.) 11211…
A: Trading securities or securities held fir sale means the securities which are intends to sale within…
Q: es Below are the account balances for Cowboy Law Firm at the end of December. Balances $ 5,400 2,200…
A: Income statement is a financial statement that shows the profitability, total revenue and total…
Q: Use the following information for the Quick Studies below. (Algo) [The following information applies…
A: BALANCE SHEETThe balance sheet is one of the important financial statements of the company. Balance…
Q: The trial balance before adjustment of Oriole Inc. shows the following balances. Accounts Receivable…
A: The allowance for doubtful accounts is created to record the estimated bad debt expense for the…
Q: Jordan Cameras, Incorporated manufactures two models of cameras. Model ZM has a zoom lens; Model DS…
A: The overhead is applied to the production on the basis of predetermined overhead rate. The total…
Q: Flying Tomato sells a snowboard, WhiteOut, that is popular with snowboard enthusiasts. Presented…
A: Gross profit of the company is the amount earned after deducting all the costs related to…
Q: Complete the following partial flexible budget performance report, and indicate whether each…
A: FLEXIBLE BUDGETA flexible budget is a budget that is prepared for different levels of activity or…
Q: At August 31, Cullumber Company has a cash balance per books of $9,700 and the following additional…
A: Adjusted cash balance is the amount of cash that is determined after adjusting the differences…
Q: Terminal Industries (TI) produces a product using three departments: Mixing. Processing, and…
A: Process costing is one of the cost accounting strategies used when a product goes through multiple…
Q: Clothing returned $800 to Williams Fashion for S Clothing paid the balance due, taking advantage
A: In the Books of William Fashion Date Account Titles Debit Credit 01-OctAccounts Receivable $…
Q: At the end of June, the job cost sheets at Ace Roofers show the following costs accumulated on three…
A: Direct labor cost is the amount of wages incurred directly in the manufacturing of product during…
Q: Ramona and Hermione formed Wiley Corporation on January 2. Ramona contributed cash of $200,000 in…
A: Corporation is one of the form of business organisation, where stock or shares are being issued to…
Q: Knowledge Check Tri Golf Course purchased a golf cart at a cash price of $14,000. Related cash…
A: Cost of an asset is the amount paid for an asset and for expenses incurred in putting the asset in…
Q: Rayya Company purchases a machine for $151,200 on January 1, 2021. Straight-line depreciation is…
A: DEPRECIATION EXPENSEDepreciation means gradual decrease in value of assets due to normal wear and…
Q: Keating Co. is considering disposing of equipment with a cost of $62,000 and accumulated…
A: Lease accounting is a financial reporting process where a company records and discloses the…
Q: Mitch, who is single
A: Note 1. Line 2a: Standard deduction or deductible taxes from Schedule A: In calculating the AMT, you…
Q: Following is a partially completed balance sheet for Epsico Incorporated at December 31, 2022,…
A: Balance sheet stands for the statement and information that shows the assets and liabilities of the…
Q: Use the information below to answer the two questions that follow. A company prepares its master…
A: Income Statement: It is a part of financial statement of a company in which revenue and expenses are…
Q: David Corporation had income before income taxes of $185,200 in 2025. David's current income tax…
A: INCOME STATEMENTIncome Statement is one of the Important Financial Statement of the Company. Income…
Q: Swifty Ltd. had the following 2023 income statement data: Revenues $113,000 Expenses 1/1/23 In 2023,…
A: Lets understand the basics.Cash flow from operating activities is a part of cash flow statement.…
Q: ZZ Company employs a periodic inventory system and sells its inventory to customers for $39 per…
A: The weighted average method is an inventory valuation method in which inventory is valued at average…
Q: On January 1, 2022, Don Buchanan purchases a business that he will carry on as a sole proprietor.…
A: Goodwill represents the intangible value associated with a business, including factors like its…
Q: 7. 4. Campus Stop is considering a contract to sell merchandise to a campus organization for…
A: Answer:- Gross profit meaning:- It is the initial profit shown on the income statement of the…
Q: Question 21 Cost of goods sold is often the largest expense on a merchandising company income…
A: Cost of Goods Sold: It implies the direct expense or cost that is incurred in the production of…
Q: a. Journalize the entries to record the following: 1. Issuance of the bonds. 2. First semiannual…
A: Face Value of Bonds = $27,900,000Maturity in years = 5Coupon Rate = 5%Interest is paid =…
Q: On December 31, 2024, capital balances of the partners in Jennifer Charters are C. David $36,000; M.…
A: A partnership is a form of business where two or more individuals make a partnership agreement to…
Q: Purchases Budget Tiger Drug Store carries a variety of health and beauty aids, including 500-count…
A: The budget is prepared to estimate the requirements for the period. The purchase budget is prepared…
Q: Sales revenue Cost of goods sold Salaries and wages expense Depreciation expense Dividend revenue…
A: The single-step income statement include the revenues at one place and all the expenses are the one…
Q: The following table tracks the main components of working capital over the life of a four-year…
A: The question is based on the concept of Financial Accounting.Net working capital is the difference…
Q: Edwards and Bell market a single line of home computers, dubbed the XL-98. The master budget for the…
A: A difference between an amount forecasted and an actual amount is known as an accounting variance.…
Q: Pina, Inc. began work on a $6,759,000 contract in 2020 to construct an office building. During 2020,…
A: Contract costing is a specialized accounting approach used by organizations to track and manage the…
Q: On January 1, Speedy Delivery Company purchases a delivery van for $33,600. Speedy estimates that at…
A: Depreciation is a way of allocating the cost of a physical item over its useful life. Depreciation…
Q: Determine Cash Flows Natural Foods Inc. is planning to invest in new manufacturing equipment to make…
A: Cash flows in the business means incoming and outgoing of cash. Incoming of cash is known as cash…
Q: Square feet Overhead $80,000 $314,000 3,000 Machine hours Support Departments General Power Factory…
A: In accounting and cost accounting, the term "overheads" refers to a cost allocation technique that…
Q: Yellow Corporation,
A: Examples of section 1231 properties include buildings, machinery, land, timber, and other…
Q: Seymore named his wife
A: Gross income includes your wages, interest, dividends, capital gains, business income, retirement…
Q: Problem 2-26 (Algo) Complete the balance sheet using cash flow data LO 2-2, 2-3, 2-5, 2-6 Following…
A: A balance sheet is essentially a financial snapshot of a corporation at a certain point in time.…
Q: Complete this question by entering your answers in the tabs below. Required A Required B Required C…
A: T-account :— It is the general ledger account which is prepared to post journal entries. It is the…
During the current year, High Corporation had 3 million shares of common stock outstanding. $5,000,000 of 6% convertible bonds were issued at face amount at the beginning of the year. High reported income before tax of $4 million and net income of $3 million for the year. The bonds are convertible into 625,000 shares of common. What is diluted EPS (rounded)?
A. $0.89. B. $0.91. C. $1.00. D. $1.08
Step by step
Solved in 3 steps
- Given the following year-end information, compute Greenwood Corporations basic and diluted earnings per share. Net income, 15,000 The income tax rate, 30% 4,000 shares of common stock were outstanding the entire year. shares of 10%, 50 par (and issuance price) convertible preferred stock were outstanding the entire year. Dividends of 2,500 were declared on this stock during the year. Each share of preferred stock is convertible into 5 shares of common stock.Longmont Corporation earned net income of $90,000 this year. The company began the year with 600 shares of common stock and issued 500 more on April 1. They issued $5,000 in preferred dividends for the year. What is the numerator of the EPS calculation for Longmont?Errol Corporation earned net income of $200,000 this year. The company began the year with 10,000 shares of common stock and issued 5,000 more on April 1. They issued $7,500 in preferred dividends for the year. What is the numerator of the EPS calculation for Errol?
- Below is select information from two, independent companies. Additional information includes: On January 1, Company A issued a 5-year $1,500,000 bond with at 6% stated rate. Interest is paid semiannually and the bond was sold at 105.5055 to yield a market rate of 4.75%. On January 1, Company B sold $1,500,000 of common stock and paid dividends of $75,000. A. Prepare an income statement for each company (ignore taxes) B. Explain why the net income amounts are different, paying particular attention to the operational performance and financing performance of each company. (Hint: it may be helpful for you to create an amortization table).During the current year, North Corporation had 2 million shares of common stock outstanding. Two thousand 10% convertible bonds, each with $1,000 face value, were issued at face amount at the beginning of the year. East reported net income of $2 million for the year. Each bond is convertible into 10 shares of common stock. The tax rate is 25%. What is diluted EPS (rounded)? A. $1.00. B. $0.90. C. $0.95. D. $1.10. -3-Carla Vista Corporation had net income of $42,000 for the year ended December 31, 2023, and weighted average number of common shares outstanding of 10,000. The following information is provided regarding the capital structure: 1. 2. (a1) (a2) 8% convertible debt, 210 bonds each convertible into 43 common shares. The bonds were outstanding for the entire year. The income tax rate is 35%. The bonds were issued at par ($1,150 per bond). No bonds were converted during the year. 3% convertible, cumulative $100 preferred shares, 1,000 shares issued and outstanding. Each preferred share is convertible into 2 common shares. The preferred shares were issued at par and were outstanding the entire year. No shares were converted during the year. Calculate the basic earnings per share for 2023. (Round answer to 2 decimal places, e.g. 15.25.) Basic earnings per share eTextbook and Media
- On January 1, 2X16, Manila Co. has 100,000 outstanding ordinary shares. During the year, Manila Co. reported a net income of P5,000,000. The income tax rate is 30%. Besides, Manila Co. has 4,000, 10% convertible bonds with 1,000 face amount. Each bond is convertible into five (5) ordinary shares. Required: Solve for the following: 1. Determine the amount of basic earnings per share for the year. 2. Determine the amount of diluted earnings per share under each of the following scenarios. a. Bonds were issued on January 1, 2X16, and there were no conversions made during the year. b. Bonds were issued on April 1, 2X16, and there were no conversions made during the year. c. Bonds were issued in the previous year and were converted on October 1, 2X16.Kansas Instruments reported $9,200,000 in net income for the current year. The company had $4,800,000 of 6% cumulative, non-convertible preferred stock outstanding all year, and issued, $6,000,000 of 6.5% convertible bonds issued on April 1. Each bond is convertible into 50 shares of common stock. Common shares outstanding all year were 1,900,000. Compute both basic and diluted EPS when the tax rate is 25%. Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.MANILA CO. On January 1, 2X16, Manila Co. has 100,000 outstanding ordinary shares. During the year, Manila Co. reported a net income of P5,000,000. The income tax rate is 30%. Besides, Manila Co. has 4,000, 10% convertible bonds with 1,000 face amount. Each bond is convertible into five (5) ordinary shares. Determine the amount of basic earnings per share for the year. Determine the amount of diluted earnings per share under each of the following scenarios. Bonds were issued on January 1, 2X16, and there were no conversions made during the Bonds were issued on April 1, 2X16, and there were no conversions made during the Bonds were issued in the previous year and were converted on October 1, 2X16
- Wild Cat Corporation has a $1,000,000 debt issue that is convertible into 10,000 prdinary shares Interest expense on the liability component of this convertible bond is $60,000. Net income for the year is $210,000, the weighted average number of ordinary shares outstanding is 100,000 shares, and the tax rate is 40 percent. In this case assumed conversion of the debt into ordinary shares at the beginning of the year. Requirement. a. Calculate Basic EPS b. Calculate Diluted EPSThe information below pertains to Sage Company for 2021. Net income for the year $1,210,000 7% convertible bonds issued at par ($1,000 per bond); each bond is convertible into 30 shares of common stock 1,990,000 6% convertible, cumulative preferred stock, $100 par value; each share is convertible into 3 shares of common stock 3,860,000 Common stock, $10 par value 5,880,000 Tax rate for 2021 20% Average market price of common stock $25 per share There were no changes during 2021 in the number of common shares, preferred shares, or convertible bonds outstanding. There is no treasury stock. The company also has common stock options (granted in a prior year) to purchase 72,400 shares of common stock at $20 per share. (b) Compute diluted earnings per share for 2021. (Round answer to 2 decimal places, e.g. $2.55.) Diluted earnings per shareInformation from the financial statements of Ames Fabricators, Inc., included the following: Common shares Convertible preferred shares (convertible into 42,000 shares of common) 14,400 8% convertible bonds (convertible into 30,000 shares of common) $1,000,000 Basic Diluted December 31 Numerator I Denominator = 7 / 2021 100,000 Ames's net income for the year ended December 31, 2021, is $540,000. The income tax rate is 25%. Ames paid dividends of $5 per share on its preferred stock during 2021. = Required: Compute basic and diluted earnings per share for the year ended December 31, 2021. (Enter your answers in thousands (For example, 100,000 should be entered as 100). Do not round intermediate calculations.) Earnings per Share 2020 100,000 14,400 $1,000,000