Tamarisk Company's net income for 2025 is $598.000, and 84,000 shares of common stock were issued and outstanding during 2025. The only potentially dilutive securities outstanding were 27,000executive stock options issued during 2024, each exercisable for one share at $19.00, none of these have been exercised. The average market price of Tamarisk's stock during 2025 was $25.(a) Compute diuted earnings per share. (Round answer to 2 decimal places, eg 2.55)Diluted earnings per share $(b) Assume the same facts as those assumed for part (a), except that 10.000 additional options were issued on October 1, 2025, with an exercise price of $26 (the market price of the common stock on thatdate). The average market price during the last 3 months of 2025 was $28.00. (Round answer to 2 decimal places, eg. 2.55)Diluted earnings per share $

Diluted Earnings Per Share (EPS) is a financial metric that goes beyond basic EPS by accounting for…

Answered: Tamaris Company's net income for 2025…

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter16: Retained Earnings And Earnings Per Share

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Problem 23P

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Monona Company reported net income of 29,975 for 2019. During all of 2019, Monona had 1,000 shares of 10%, 100 par, nonconvertible preferred stock outstanding, on which the years dividends had been paid. At the beginning of 2019, the company had 7,000 shares of common stock outstanding. On April 2, 2019, the company issued another 2,000 shares of common stock so that 9,000 common shares were outstanding at the end of 2019. Common dividends of 17,000 had been paid during 2019. At the end of 2019, the market price per share of common stock was 17.50. Required: 1. Compute Mononas basic earnings per share for 2019. 2. Compute the price/earnings ratio for 2019.
Lyon Company shows the following condensed income statement information for the year ended December 31, 2019: Lyon declared dividends of 6,000 on preferred stock and 17,280 on common stock. At the beginning of 2019, 10,000 shares of common stock were outstanding. On May 1, 2019, the company issued 2,000 additional common shares, and on October 31, 2019, it issued a 20% stock dividend on its common stock. The preferred stock is not convertible. Required: 1. Compute the 2019 basic earnings per share. 2. Show the 2019 income statement disclosure of basic earnings per share. 3. Draft a related note to accompany the 2019 financial statements.
Metlock Company's net income for 2025 is $49,200. The only potentially dilutive securities outstanding were 1,100 options issued during 2024, each exercisable for one share at $6. None has been exercised, and 9,900 shares of common were outstanding during 2025. The average market price of Metlock's stock during 2025 was $15. a. Compute diluted earnings per share. (Round answer to 2 decimal places, e.g. 2.55.) Diluted earnings per share $ b. Assume the same facts as those assumed for part (a), except that the 1,100 options were issued on October 1, 2025 (rather than in 2024). The average market price during the last 3 months of 2025 was $15. (Round answer to 2 decimal places, e.g. 2.55.) Diluted earnings per share $
Indigo Company's net income for 2025 is $641,000, and 79,000 shares of common stock were issued and outstanding during 2025. The only potentially dilutive securities outstanding were 27,000 executive stock options issued during 2024, each exercisable for one share at $19.50; none of these have been exercised. The average market price of Indigo's stock during 2025 was $25. (a) Compute diluted earnings per share. (Round answer to 2 decimal places, e.g. 2.55.) Diluted earnings per share $ (b) Assume the same facts as those assumed for part (a), except that 10,000 additional options were issued on October 1, 2025, with an exercise price of $26 (the market price of the common stock on that date). The average market price during the last 3 months of 2025 was $28.50. (Round answer to 2 decimal places, e.g. 2.55.) Diluted earnings per share $
Sheffield Company's net income for 2025 is $53,200. The only potentially dilutive securities outstanding were 1,000 options issued during 2024, each exercisable for one share at $6. None has been exercised, and 10,700 shares of common were outstanding during 2025. The average market price of Sheffield's stock during 2025 was $25. a. Compute diluted earnings per share. (Round answer to 2 decimal places, e.g. 2.55.) Diluted earnings per share $ b. Assume the same facts as those assumed for part (a), except that the 1,000 options were issued on October 1, 2025 (rather than in 2024). The average market price during the last 3 months of 2025 was $25. (Round answer to 2 decimal places, e.g. 2.55.) Diluted earnings per share
Crane Corp's net income for 2023 is $153,920. The only potentially dilutive securities outstanding were 2,400 call options issued during 2022, with each option being exercisable for one share at $24. None have been exercised, and 38,000 common shares were outstanding during 2023. The average market price of the company's shares during 2023 was $30. Your answer is correct. Calculate diluted earnings per share for the year ended December 31, 2023. (Round answer to 2 decimal places, e.g. 15.25.) Diluted earnings per share eTextbook and Media × Your answer is incorrect. $ 4.00 Assuming that the 2,400 call options were instead issued on November 1, 2023 (rather than in 2022), calculate diluted earnings per share for the year ended December 31, 2023. The average market price during the last two months of 2023 was $30. (Round answer to 2 decimal places, e.g. 15.25.) Diluted earnings per share $ 4.00
Ayayai Company’s net income for 2020 is $52,900. The only potentially dilutive securities outstanding were 1,040 options issued during 2019, each exercisable for one share at $6. None has been exercised, and 10,900 shares of common were outstanding during 2020. The average market price of Ayayai’s stock during 2020 was $20.(a) Compute diluted earnings per share. Diluted earnings per share $
Pharoah Company’s net income for 2020 is $709,000, and 94,000 shares of common stock were issued and outstanding during 2020. The only potentially dilutive securities outstanding were 28,000 executive stock options issued during 2019, each exercisable for one share at $20.00, none of these have been exercised. The average market price of Pharoah’s stock during 2020 was $25.50.(a) Compute diluted earnings per share.
Novak Company’s net income for 2020 is $594,000, and 91,000 shares of common stock were issued and outstanding during 2020. The only potentially dilutive securities outstanding were 26,000 executive stock options issued during 2019, each exercisable for one share at $19.50, none of these have been exercised. The average market price of Novak’s stock during 2020 was $25.00.(a) Compute diluted earnings per share. (Round answer to 2 decimal places, e.g. 2.55.) Diluted earnings per share $enter a dollar amount rounded to 2 decimal places (b) Assume the same facts as those assumed for part (a), except that 10,000 additional options were issued on October 1, 2020, with an exercise price of $26.00 (the market price of the common stock on that date). The average market price during the last 3 months of 2020 was $28.50. (Round answer to 2 decimal places, e.g. 2.55.) Diluted earnings per share $enter the diluted earnings per share in dollar rounded to 2 decimal places
Marin Company’s net income for 2020 is $691,000, and 91,000 shares of common stock were issued and outstanding during 2020. The only potentially dilutive securities outstanding were 23,000 executive stock options issued during 2019, each exercisable for one share at $21.00, none of these have been exercised. The average market price of Marin’s stock during 2020 was $26.50.(a) Compute diluted earnings per share. (Round answer to 2 decimal places, e.g. 2.55.) Diluted earnings per share $enter a dollar amount rounded to 2 decimal places (b) Assume the same facts as those assumed for part (a), except that 10,000 additional options were issued on October 1, 2020, with an exercise price of $27.50 (the market price of the common stock on that date). The average market price during the last 3 months of 2020 was $30.00. (Round answer to 2 decimal places, e.g. 2.55.) Diluted earnings per share $enter the diluted earnings per share in dollar rounded to 2 decimal places
Oriole Company had net income for 2021 of $603000. The average number of shares outstanding for the period was 201000 shares. The average number of shares under outstanding options, at an option price of $29 per share is 12600 shares. The average market price of the common stock during the year was $36. What should Oriole Company report for diluted earnings per share for the year ended 2021?
Shamrock Company’s net income for 2020 is $52,300. The only potentially dilutive securities outstanding were 1,200 options issued during 2019, each exercisable for one share at $6. None has been exercised, and 9,300 shares of common were outstanding during 2020. The average market price of Shamrock’s stock during 2020 was $20. (a) Compute diluted earnings per share. (b) Assume the same facts as those assumed for part (a), except that the 1,200 options were issued on October 1, 2020 (rather than in 2019). The average market price during the last 3 months of 2020 was $20. Diluted earnings per share

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