Question

In: Accounting

Curse of the Bambino Entertainment (CotBE) had the following securities outstanding and other information for 2017:...

Curse of the Bambino Entertainment (CotBE) had the following securities outstanding and other information for 2017:

Preferred Stock:

Issue A Preferred Stock, cumulative and nonconvertible, 5%, $100 par: $1,000,000

Dividend payments are in arrears for three (3) years.

Issue B Preferred Stock, non-cumulative and convertible, 6%, $100 par: $4,000,000

Conversion rate is 4 common shares for every preferred share.

Common Stock:

Class A Common Stock, $1 par, 5,000,000 shares authorized, 1,000,000 shares

issued and outstanding at January 1, 2017 $1,000,000

Repurchased 120,000 shares on March 1, 2017
Repurchased 60,000 shares on July 1, 2017
Sold 100,000 of repurchased (treasury) shares on September 1, 2017

Stock Warrants - warrants are exchangeable for 100,000 common shares. The warrants were issued on October 1, 2016 and have a $15 exercise price per warrant. The average market price per share during 2017 was $20.

Stock Options – CotBE’s issued 100,000 stock options to key executives on January 1, 2017 which vest on December 31, 2019 and have an exercise price of $16 per option.

Convertible Bonds - 8% Convertible Bonds of $5,000,000 were sold at face value on July 1, 2017. Each $1,000 of bond is convertible into 120 shares of common stock.

Other Information:

- Net Income for 2017 was $1,700,000

- Income Tax Rate was 40% for 2017

- CotBE’s declared and paid a cash dividend of $200,000 on common stock during 2017.

REQUIRED- Calculate CotBE’s Basic and Diluted EPS for the year ended December 31, 2017, show all calculations.

Expert Solution

ekkarill92 answered 1 year ago

For 2017, Rockford, Inc., had sales of 150,000 units and production of 200,000 units. Other information...

For 2017, Rockford, Inc., had sales of 150,000 units and production of 200,000 units. Other information for the year included: Direct Manufacturing labor $197,500 Variable Manufactuing overhead $100,000 direct materials $ 160,000 variable selling expenses $100,000 fixed administrative expenses $100,000 fixes manufacturing overhead $250,000 There was no begining inventory compute the ending finished goods inventory under both absorption and varaiable costing.

On January 1, 2017, Ivanhoe Ltd. had 500,000 common shares outstanding. During 2017, it had the...

On January 1, 2017, Ivanhoe Ltd. had 500,000 common shares outstanding. During 2017, it had the following transactions that affected the common share account: Feb. 1 Issued 157,000 shares. Mar. 1 Issued a 19% stock dividend. May 1 Acquired 168,000 common shares and retired them. June 1 Issued a 2-for-1 stock split. Oct. 1 Issued 71,000 shares. The company’s year end is December 31. Determine the weighted average number of shares outstanding as at December 31, 2017. Assume that Ivanhoe...

Watson Company has several investments in the securities of other companies. The following information regarding these...

Watson Company has several investments in the securities of other companies. The following information regarding these investments is available at December 31, 2019. 1. Watson holds bonds issued by Fowler Corp. The bonds have an amortized cost of $600,000, and their fair value at December 31, 2019, is $700,000. Watson intends to hold the bonds until they mature on December 31, 2022. 2. Watson has invested idle cash in the equity securities of several publicly traded companies. Watson intends to...

TamariskCompany has several investments in the securities of other companies. The following information regarding these investments...

TamariskCompany has several investments in the securities of other companies. The following information regarding these investments is available at December 31, 2017. 1. Tamarisk holds bonds issued by Dorsel Corp. The bonds have an amortized cost of $322,000 and their fair value at December 31, 2017, is $395,000. Tamarisk intends to hold the bonds until they mature on December 31, 2025. 2. Tamarisk has invested idle cash in the equity securities of several publicly traded companies. Tamarisk intends to sell...

During 2016, Sanchez, Inc. had the following convertible securities outstanding: $220,000 of 10%, $100 par, cumulative...

During 2016, Sanchez, Inc. had the following convertible securities outstanding: $220,000 of 10%, $100 par, cumulative preferred stock. Each share is convertible into 5 shares of common stock. $200,000 of 9.5% convertible bonds. Each $1,000 bond is convertible into 45 shares of common stock. $100,000 of 8% convertible bonds. Each $1,000 bond is convertible into 32 shares of common stock. $150,000 of 11%, $100 par, cumulative preferred stock. Each share is convertible into 5 shares of common stock. Sanchez, Inc....

At January 1, 2021, Canaday Corporation had outstanding the following securities: 690 million common shares 30...

At January 1, 2021, Canaday Corporation had outstanding the following securities: 690 million common shares 30 million 5% cumulative preferred shares, $50 par 6.4% convertible bonds, $3,000 million face amount, convertible into 60 million common shares The following additional information is available: On September 1, 2021, Canaday sold 72 million additional shares of common stock. Incentive stock options to purchase 40 million shares of common stock after July 1, 2020, at $14 per share, were outstanding at the beginning and...

At January 1, 2021, Canaday Corporation had outstanding the following securities: 690 million common shares 20...

At January 1, 2021, Canaday Corporation had outstanding the following securities: 690 million common shares 20 million 5% cumulative preferred shares, $50 par 6.4% convertible bonds, $3,000 million face amount, convertible into 60 million common shares The following additional information is available: On September 1, 2021, Canaday sold 72 million additional shares of common stock. Incentive stock options to purchase 40 million shares of common stock after July 1, 2020, at $14 per share, were outstanding at the beginning and...

At January 1, 2021, Canaday Corporation had outstanding the following securities: 710 million common shares 20...

At January 1, 2021, Canaday Corporation had outstanding the following securities: 710 million common shares 20 million 5% cumulative preferred shares, $50 par 6.4% convertible bonds, $4,000 million face amount, convertible into 80 million common shares The following additional information is available: On September 1, 2021, Canaday sold 78 million additional shares of common stock. Incentive stock options to purchase 60 million shares of common stock after July 1, 2020, at $12 per share, were outstanding at the beginning and...

At January 1, 2018, Canaday Corporation had outstanding the following securities: 760 million common shares 30...

At January 1, 2018, Canaday Corporation had outstanding the following securities: 760 million common shares 30 million 6% cumulative preferred shares, $50 par 7% convertible bonds, $3,000 million face amount, convertible into 90 million common shares The following additional information is available: On September 1, 2018, Canaday sold 81 million additional shares of common stock. Incentive stock options to purchase 50 million shares of common stock after July 1, 2017, at $10 per share were outstanding at the beginning and...

Alpha Company Had The Following Information For FY 2017: Work In Process Alpha Company had the...

Alpha Company Had The Following Information For FY 2017: Work In Process Alpha Company had the following information for FY 2017: Work in Process - 1/1/17 100,000 units Units Started into Production 575,000 units Work in Process - 12/31/17 75,000 units Direct Material put into Production $575,000 Direct Labor put into Production $843,750 The beginning work in process was 100% complete as to direct materials and 75% complete as to conversion costs. The ending work in process was 100% complete...