Question

In: Accounting

The Swirlie Company had net income for 2xx9 of $300,000. Beginning balance in $100 par, 8%...

The Swirlie Company had net income for 2xx9 of $300,000. Beginning balance in $100 par, 8% cumulative preferred stock is $1,000,000. No dividends are in arrears. $1,000,000 in 6% convertible bonds are outstanding during the year. Each $1,000 bond is convertible into 2 shares of common stock. Beginning balance in retained earnings is $400,000 Beginning of the year outstanding common stock shares 100,000 Par value is $10 Issued additional shares common stock March 1st 10,000 Received $12 per share Purchased shares of treasury stock on September 1 5,000 Paid $75,000 Issued 2 for 1 stock split on October 17th. Tax Rate is 20% Required: What is diluted earnings per share for the year?

Solutions

Expert Solution

1 Change Final Period in month Ratio (period/12) Average number of outstanding shares (Final*Ratio)
Jan 1 2009 Beginning 100000 2 0.17 16667
Mar 1 New 10000 110000 6 0.50 55000
Sep 1 Purchase -5000 105000 1.5 0.13 13125
Oct 17 Split 2 for 1 105000 210000 2.5 0.21 43750
12 128542
Additional share for the purpose of Dilluted earning per share
8% convertible preferred stock 10000
9% Convertible Bond 1000000/1000*2 2000
Total Additional shares for Dilluted EPS 12000
Dilluted EPS:
Net After tax income 300000
Add: back interest on bond 1000000*6% 60000
Less: Income Tax 20% 60000*20% 12000
Net income for Dilluted EPS 348000
Diluted EPS 348000/(128542+12000 additional share)
Diluted EPS                 2.48

ekkarill92 answered 1 year ago
Next > < Previous

Related Solutions

The Swirlie Company had net income for 2018 of $300,000. There is a $1,000,000 beginning balance...
The Swirlie Company had net income for 2018 of $300,000. There is a $1,000,000 beginning balance of $100 par, 8% cumulative preferred stock. No dividends are in arrears. In addition, there is $1,000,000 in 6% convertible bonds outstanding during the year. Each $1,000 bond is convertible into 2 shares of common stock. Swirlie’s effective tax rate is 20%. Beginning balance in retained earnings is $400,000 Beginning of the year outstanding common stock shares 100,000 Par value is $10 Issued additional...
G Force Manufacturing Company had net income of $300,000 in 2017 when the number of units...
G Force Manufacturing Company had net income of $300,000 in 2017 when the number of units produced and sold was 6000 and data for variable and fixed costs were as follows: Cost Schedule Variable Costs:          Direct Material                                           $35                                     Direct Labour                                         $30                                     Variable Manufacturing Overhead            $15 Fixed Costs:               Manufacturing Overhead                                          $232,000                                     Advertising                                                                   33,000                                     Administrative                                                                     155,000 Required: Compute the selling price per unit in 2017, using the equation method. Using the sales price per unit calculated...
MC Qu. 99 A company had net income... A company had net income of $2,690,000, net...
MC Qu. 99 A company had net income... A company had net income of $2,690,000, net sales of $25,200,000, and average total assets of $8,400,000. Its return on total assets equals: Multiple Choice -312.27%. -33.33%. -10.67%. -32.02%. -3.12%. MC Qu. 109 Carpark Services... Carpark Services began operations in 20X1 and maintains long-term investments in available-for-sale securities. The year-end cost and fair values for its portfolio of these investments follow. The year-end adjusting entry to record the unrealized gain/loss at December...
G-Force Manufacturing Company had net income of $300,000 in 2017 when the number of units produced...
G-Force Manufacturing Company had net income of $300,000 in 2017 when the number of units produced and sold was 6,000 and data for variable and fixed costs were as follows: Cost Schedule: Variable Costs: Direct Material $35 Direct Labour $30 Variable Manufacturing Overhead $15 Fixed Costs: Manufacturing Overhead $232,000 Advertising 33,000 Administrative 155,000 Required: i) Compute the selling price per unit in 2017, using the equation method. ii) Using the sales price per unit calculated in (i), prepare a contribution...
Grange Manufacturing Company had net income of $300,000 in 2017 when the selling price per unit...
Grange Manufacturing Company had net income of $300,000 in 2017 when the selling price per unit was $200 and data for variable and fixed costs were as follows: Cost Schedule: Variable Costs: Direct Material $28 Direct Labour $35 Variable Manufacturing Overhead $17 $80 Fixed Costs: Manufacturing Overhead $225,000 Advertising 45,000 Administrative 150,000 $420,000 Required: i)             Compute the number of units sold in 2017, using the equation method. ii)           Using the sales units calculated in (i), prepare a contribution margin income statement for...
Grange Manufacturing Company had net income of $300,000 in 2017 when the selling price per unit...
Grange Manufacturing Company had net income of $300,000 in 2017 when the selling price per unit was $200 and data for variable and fixed costs were as follows: Cost Schedule: Variable Costs: Direct Material $28 Direct Labour $35 Variable Manufacturing Overhead $17 $80 Fixed Costs: Manufacturing Overhead $225,000 Advertising 45,000 Administrative 150,000 $420,000 i)             Compute the number of units sold in 2017, using the equation method. iv)          Calculate the margin of safety in number of units and sales dollars. v)           Using the sales...
Grange manufacturing company had net income of $300,000 in 2017 when the selling price per unit...
Grange manufacturing company had net income of $300,000 in 2017 when the selling price per unit was $200 and data for variable and fixed costs were as follows:   Cost Schedule: Variable Costs: Direct Material $28 Direct Labour $35 Variable Manufacturing Overhead $17 Total $80 Fixed Costs: Manufacturing Overhead $225,000 Advertising 45,000 Administrative 150,000 Total $420,000 Required: i) Compute the number of units sold in 2017, using the equation method. ii) Calculate Grange’s break-even point in units and in dollars. iii)...
a. Titan Inc had net income of $300,000, Depreciation expense of $35,000, gain on sale of...
a. Titan Inc had net income of $300,000, Depreciation expense of $35,000, gain on sale of equipment $11,000, and provided the following information for 2029: 2019 2018 Accounts receivable 52,000 18,000 Prepaid insurance 20,000 30,000 Accounts payable 35,000 11,000 Taxes payable 8,000 29,000 Wages payable 49,000 5,000 Using the indirect method, how much was Titan's net cash provided by operating activities? b. On April 1, 2017, Titan Inc. 6% annual interest-bearing note payable for $60,000. The note has a maturity...
Ringmeup had a net income of 165200 for the year ended Dec31,2016At the beginning of the...
Ringmeup had a net income of 165200 for the year ended Dec31,2016At the beginning of the year 37000 sharesof common stockwere outstanding. On May1 an additional 15000 shares were issued. On Dec2. the Comp purchased 4900 shares of its own common stock and held them as treasury stock until the end of the year. During the year Ringmeup paid annual divedend of 8000 shares of 3.80% 100 per value preferred stock that were outstanding the entire year. Calculate basic earning...
Net income for the company for the year was $300,000, and 100,000 shares of common stock...
Net income for the company for the year was $300,000, and 100,000 shares of common stock were outstanding during the year. The income tax rate is 30%. For each of the following potentially dilutive securities, perform the shortcut antidilution test to determine whether the security is dilutive. Assume that each of the securities was issued on or before January 1. Treat each security independently; in other words, when testing one security, assume that the others do not exist.      (10)...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT