Question
In: Accounting
Culver Corporation had a net income for the current year ending December 31, 2018 of $1,150,000....
Culver Corporation had a net income for the current year ending
December 31, 2018 of $1,150,000. Throughout 2018 the following
items were outstanding:
| ? | 440,000 common shares | |
| ? | 21,000 Class A $3 cumulative preferred shares that were convertible to common shares at a rate of 1:1 | |
| ? | 49,000 Class B $4 non-cumulative preferred shares that were convertible at a rate of two preferred shares to one common share. | |
| ? | $470,000, 8% bonds that were convertible to 16,000 common shares | |
| ? | $330,000, 10% bonds convertible to 14,000 common shares |
No dividends were declared or paid in 2018. Culver’s tax rate is 25%.
1. Calculate basic earnings per share. (For simplicity, ignore the requirement to record the debt and equity portions of the convertible bond separately).
2. Calculate diluted earnings per share. (For simplicity, ignore the requirement to record the debt and equity portions of the convertible bond separately).
Solutions
ekkarill92 answered 1 year agoRelated Solutions
Carla Corporation had a net income for the current year ending December 31, 2021 of $1,204,500....
Carla Corporation had a net income for the current year ending
December 31, 2021 of $1,204,500. Throughout 2021 the following
items were outstanding:
●
413,000 common shares
●
18,500 Class A $3 cumulative preferred shares that were
convertible to common shares at a rate of 1:1
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49,500 Class B $4 non-cumulative preferred shares that were
convertible at a rate of one common share for every two preferred
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$551,000, 8% bonds that were convertible to 14,500 common
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Independent to Gala, Fuji Corporation had net income of $676,000 for the year ended December 31,...
Independent to Gala, Fuji Corporation had net income of $676,000
for the year ended December 31, 2019, and weighted average number
of common shares outstanding of 120,000. The following information
is provided regarding the capital structure:
8% convertible debt, $2,000,000 in bonds which were issued at
par ($1,000 per bond) and are convertible into 20 common shares
each. The bonds were outstanding for the entire year and with none
being issued or converted during the year. The income tax...
Powell Panther Corporation: Income Statements for Year Ending December 31 (Millions of Dollars) 2018 2017 Sales...
Powell Panther Corporation: Income Statements for Year
Ending December 31 (Millions of Dollars)
2018
2017
Sales
$
3,250.0
$
2,600.0
Operating costs excluding depreciation and amortization
2,763.0
2,210.0
EBITDA
$
487.0
$
390.0
Depreciation and amortization
90.0
78.0
Earnings before interest and taxes (EBIT)
$
397.0
$
312.0
Interest
72.0
57.0
Earnings before taxes (EBT)
$
325.0
$
255.0
Taxes (40%)
130.0
102.0
Net income
$
195.0
$
153.0
Common dividends
$
176.0
$
122.0
Powell Panther Corporation: Balance Sheets...
Powell Panther Corporation: Income Statements for Year Ending December 31 (Millions of Dollars) 2019 2018 Sales...
Powell Panther Corporation: Income Statements for Year
Ending December 31 (Millions of Dollars)
2019
2018
Sales
$
1,820.0
$
1,400.0
Operating costs excluding depreciation and amortization
1,547.0
1,190.0
EBITDA
$
273.0
$
210.0
Depreciation and amortization
46.0
36.0
Earnings before interest and taxes (EBIT)
$
227.0
$
174.0
Interest
40.0
30.8
Earnings before taxes (EBT)
$
187.0
$
143.2
Taxes (25%)
74.8
57.3
Net income
$
112.2
$
85.9
Common dividends
$
101.0
$
68.7
Powell Panther Corporation: Balance Sheets...
Rhodes Corporation: Income Statements for Year Ending December 31 (Millions of Dollars) 2018 2017 Sales $8,400.0...
Rhodes Corporation: Income Statements for Year Ending
December 31 (Millions of Dollars)
2018
2017
Sales
$8,400.0
$7,000.0
Operating costs excluding depreciation
6,510.0
5,950.0
Depreciation and amortization
228.0
182.0
Earnings before interest and taxes
$1,662.0
$868.0
Less Interest
181.0
151.0
Pre-tax income
$1,481.0
$717.0
Taxes (40%)
592.4
286.8
Net income available to common stockholders
$888.6
$430.2
Common dividends
$800.0
$344.0
Rhodes Corporation: Balance Sheets as of December 31
(Millions of Dollars)
2018
2017
Assets
Cash
$101.0
$84.0
Short-term investments
42.0
35.0...
Free Cash Flows Rhodes Corporation: Income Statements for Year Ending December 31 (Millions of Dollars) 2018...
Free Cash Flows
Rhodes Corporation: Income Statements for Year Ending
December 31 (Millions of Dollars)
2018
2017
Sales
$3,300.0
$3,000.0
Operating costs excluding depreciation
2,558.0
2,550.0
Depreciation and amortization
73.0
63.0
Earnings before interest and taxes
$669.0
$387.0
Less Interest
71.0
65.0
Pre-tax income
$598.0
$322.0
Taxes (40%)
239.2
128.8
Net income available to common stockholders
$358.8
$193.2
Common dividends
$323.0
$155.0
Rhodes Corporation: Balance Sheets as of December 31
(Millions of Dollars)
2018
2017
Assets
Cash
$49.0
$39.0
Short-term...
Rhodes Corporation: Income Statements for Year Ending December 31 (Millions of Dollars) 2018 2017 Sales $3,250.0...
Rhodes Corporation: Income Statements for Year Ending
December 31 (Millions of Dollars)
2018
2017
Sales
$3,250.0
$2,500.0
Operating costs excluding depreciation
2,438.0
2,125.0
Depreciation and amortization
60.0
53.0
Earnings before interest and taxes
$752.0
$322.0
Less Interest
70.0
54.0
Pre-tax income
$682.0
$268.0
Taxes (40%)
272.8
107.2
Net income available to common stockholders
$409.2
$160.8
Common dividends
$368.0
$129.0
Rhodes Corporation: Balance Sheets as of December 31
(Millions of Dollars)
2018
2017
Assets
Cash
$42.0
$38.0
Short-term investments
17.0
13.0...
Rhodes Corporation: Income Statements for Year Ending December 31 (Millions of Dollars) 2018 2017 Sales $1,725.0...
Rhodes Corporation: Income Statements for Year Ending December
31 (Millions of Dollars) 2018 2017 Sales $1,725.0 $1,500.0
Operating costs excluding depreciation 1,294.0 1,275.0 Depreciation
and amortization 41.0 33.0 Earnings before interest and taxes
$390.0 $192.0 Less Interest 37.0 32.0 Pre-tax income $353.0 $160.0
Taxes (40%) 141.2 64.0 Net income available to common stockholders
$211.8 $96.0 Common dividends $191.0 $77.0 Rhodes Corporation:
Balance Sheets as of December 31 (Millions of Dollars) 2018 2017
Assets Cash $24.0 $21.0 Short-term investments 9.0 8.0...
Rhodes Corporation: Income Statements for Year Ending December 31 (Millions of Dollars) 2018 2017 Sales $2,200.0...
Rhodes Corporation: Income Statements for Year Ending
December 31 (Millions of Dollars)
2018
2017
Sales
$2,200.0
$2,000.0
Operating costs excluding depreciation
1,870.0
1,700.0
Depreciation and amortization
55.0
50.0
Earnings before interest and taxes
$275.0
$250.0
Less Interest
47.0
43.0
Pre-tax income
$228.0
$207.0
Taxes (40%)
91.2
82.8
Net income available to common stockholders
$136.8
$124.2
Common dividends
$123.0
$99.0
Rhodes Corporation: Balance Sheets as of December 31
(Millions of Dollars)
2018
2017
Assets
Cash
$30.0
$26.0
Short-term investments
11.0
10.0...
Free Cash Flows Rhodes Corporation: Income Statements for Year Ending December 31 (Millions of Dollars) 2018...
Free Cash Flows
Rhodes Corporation: Income Statements for Year Ending
December 31 (Millions of Dollars)
2018
2017
Sales
$3,750.0
$3,000.0
Operating costs excluding depreciation
2,813.0
2,550.0
Depreciation and amortization
94.0
78.0
Earnings before interest and taxes
$843.0
$372.0
Less Interest
81.0
65.0
Pre-tax income
$762.0
$307.0
Taxes (40%)
304.8
122.8
Net income available to common stockholders
$457.2
$184.2
Common dividends
$411.0
$147.0
Rhodes Corporation: Balance Sheets as of December 31
(Millions of Dollars)
2018
2017
Assets
Cash
$38.0
$33.0
Short-term...
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