Question

In: Accounting

The following information is from Alberta Ltd financial statements for the year ended Dec 31, 2020:...

The following information is from Alberta Ltd financial statements for the year ended Dec 31, 2020: - Net income for the year $ 460,000. - 8% Convertible bonds issued at par $1,000,000 ($1000 per bond), each bond convertible into 20 common shares $1,000,000 - 6% non-cumulative preferred shares $100 par value. $1,000,000 - Common shares 120,000 authorized, 60,000 issued and outstanding $ 600,000 - Stock options (call option granted in a prior year) to purchase 30,000 common shares at $10 per common share. - Average market price per common share during 2020 was $12, and the tax rate for 2020 is 35% - Alberta declare and pay $100,000 dividends during 2020 There were no changes during 2020 in the number of common shares, preferred shares, stock options or convertible bonds. Also for simplicity, ignore the requirement to book the convertible bonds’ equity portion separately. Instruction: A) Calculate the basic EPS for 2020 B) Calculate diluted EPS for 2020 (Show your calculation for each transaction/ affect)

Solutions

Expert Solution


Related Solutions

The following information is from Alberta Ltd financial statements for the year ended Dec 31, 2020:...
The following information is from Alberta Ltd financial statements for the year ended Dec 31, 2020: - Net income for the year $ 460,000. - 8% Convertible bonds issued at par $1,000,000 ($1000 per bond), each bond convertible into 20 common shares $1,000,000 - 6% non-cumulative preferred shares $100 par value. $1,000,000 - Common shares 120,000 authorized, 60,000 issued and outstanding $ 600,000 - Stock options (call option granted in a prior year) to purchase 30,000 common shares at $10...
LazyDaz, Inc. reported the following for its 2020 financial statements. Balance Sheet Dec 31, 2020 Dec...
LazyDaz, Inc. reported the following for its 2020 financial statements. Balance Sheet Dec 31, 2020 Dec 31, 2019 Difference Cash 526 315 211 Accounts Receivable 24 16 8 Allow for Doubtful Accounts (2) (1) (1) Inventory 21 32 (11) PP&E 1,709 1,750 (41) Land 809 660 149 Accumulated Depreciation (314) (300) (14) Patent 6 8 (2) Total Assets 2,779 2,480 Accounts Payable 37 19 18 Wages Payable 7 10 (3) Unearned Revenue 12 11 1 Interest Payable 57 50 7...
Below is information from Darren Company’s 2012 financial statements. As of Dec. 31, 2012 Dec. 31,...
Below is information from Darren Company’s 2012 financial statements. As of Dec. 31, 2012 Dec. 31, 2011 Cash and short-term investments $ 958,245 $ 745,800 Accounts Receivable (net) 125,850 135,400 Inventories 195,650 175,840 Prepaid Expenses and other current assets 45,300 30,860 Total Current Assets $1,325,045 $1,087,900 Plant, Property and Equipment, net 1,478,320 1,358,700 Intangible Assets 125,600 120,400 Total Assets $2,928,965 $2,567,000 Short-term borrowings $   25,190 $   38,108 Current portion of long-term debt 45,000 40,000 Accounts payable 285,400 325,900 Accrued liabilities...
QUESTION TWO The following are financial statements of Buchi Ltd for the year ended 31 December...
QUESTION TWO The following are financial statements of Buchi Ltd for the year ended 31 December 2019 Statement of comprehensive income for the year ended 31 December 2019 K K Revenue 900 000 Cost of sales 475 000 Gross profit 425 000 Operating expenses 220 000 Interest 13 000 Loss on sale of equipment 2 000 (235 000) Net profit before tax 190 000 Tax 65 000 Net profit after tax 125 000 Statement of financial position as at 31...
The following information is available for the Roots Heritage Corp. for the year ended Dec. 31,...
The following information is available for the Roots Heritage Corp. for the year ended Dec. 31, 2015: Collection of principal on long term loan to a supplier …… ……………    $35,000 Purchase of equipment for cash …     ……………………………………    10,000 Proceeds from sale of long-term investment at book value ……………..     27,000 Issuance of common stock for cash ……………………………………..     20,000 Depreciation expense for the year   …………………………………           25,000 Redemption of bonds at carrying value     ………………………….            24,000 Payment of cash dividends ………………………………………………        9,000 Net...
The financial statements of Pouchie Co. included the following information for the year ended December 31,...
The financial statements of Pouchie Co. included the following information for the year ended December 31, 2016 (amountsin millions Depreciation and amortization expense $260 Cash dividends declared and paid 343 Purchase of equipment 818 Net income 396 Beginning cash balance 128 Proceeds of common stock issued 171 Proceeds from sale of building (at book value) 215 Accounts receivable increase 16 Ending cash balance 92 Inventory decrease 45 Accounts payable increase 54 Required: Complete the following statement of cash flows, using...
Selected information from the comparative financial statements of Emley Company for the year ended December 31,...
Selected information from the comparative financial statements of Emley Company for the year ended December 31,                                                                                    2017 2016 Accounts receivable (net)                                 $180,000 $200,000 Inventory                                                                    140,000                 160,000 Total assets                                                             1,200,000                 800,000 Current liabilities                                                       140,000                 110,000 Long-term debt                                                          400,000                 300,000 Net credit sales                                                       1,330,000                 700,000 Cost of goods sold                                                     900,000                 530,000 Interest expense                                                           50,000                   25,000 Income tax expense                                                     60,000                   29,000 Net income                                                                 150,000                   85,000 Compute each of the following ratios and interpret the results: Inventory turnover Times interest earned The...
The FOllowing information from the accounts of kesha Ltd for the year ended December 31, 2009...
The FOllowing information from the accounts of kesha Ltd for the year ended December 31, 2009 has been provided to you: Net icome................................2,090,000 Amortization of intangible assert.............120,000 Proceeds from issue of ord. share...........1,030,000 Increase in inventory...............................180,000 Sale of building at shs 100,000 gain........850,000 Increase in accounts payable...........150,000 Purchase of computer equipment........1,250,000 Payments of cash dividends..............240,000 Depreciation expense...................350,000 Increase in accounts receivable...........230,000 Payment of mortagage.................520,000 Decrease in short-term notes payable.......80,000 Sale of land at shs 50,000 loss............260,000 Purchase of delivery truck.................330,000...
Langley Company's December 31 year-end financial statements contained the following errors: Dec. 31, 2017 Dec. 31,...
Langley Company's December 31 year-end financial statements contained the following errors: Dec. 31, 2017 Dec. 31, 2018 Ending inventory $27,500 understated $35,000 overstated Depreciation expense 10,000 overstated An insurance premium of $290,000 was prepaid in 2017 covering the years 2017, 2018, and 2019. The prepayment was correctly recorded with a debit to prepaid insurance. However, the prepaid insurance account at December 31, 2018 had a balance of $290,000. (a) What is the total net effect of the errors on the...
The Duckworth Ltd. 20X5 financial statements include the following: Statement of comprehensive income Year ended 31...
The Duckworth Ltd. 20X5 financial statements include the following: Statement of comprehensive income Year ended 31 December 20X5 Earnings from continuing operations $ 3,196,000 Discontinued operations (net of tax) 502,000 Net earnings and comprehensive income $ 3,698,000 Statement of financial position 31 December 20X5 Bonds payable, 7%, nonconvertible $ 11,400,000 Preferred shares, no-par value, $1.04, nonconvertible, noncumulative, outstanding during year, 640,000 shares 11,400,000 Common shares, no-par value: Outstanding 1 Jan., 35,400,000 shares $ 7,290,000 Sold and issued 1 April, 3,310,000...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT