Question
In: Accounting
Leek Co’s profit for the year ended 31 December 2018 was €1,500,000. On 1 January 2018...
Leek Co’s profit for the year ended 31 December 2018 was €1,500,000. On 1 January 2018 Leek Co had 500,000 ordinary shares outstanding. On 1 July 2018 there was a full market price issue of 200,000 additional shares. In addition the company has one potentially convertible security: €800,000 of 5% convertible bonds, convertible into a total of 200,000 shares. Assuming a tax rate of 30%, calculate the company’s basic and diluted EPS.
For calculating the basic EPS the weighted average number of shares for the year ended 31 December 2018 is ["900,000", "700,000", "600,000"]
The Basic EPS is ["€2.50", "€1.67", "€2.14"]
The restated profit for calculated the Diluted EPS is ["1,512,000", "1,528,000", "1,540,000"]
The number of shares for calculating the Diluted EPS is ["800,000", "900,000", "700,000"]
The diluted EPS is ["€1.91", "€1.71", "€1.88"]
Solutions
Expert Solution
The answer has been presented in the supporting sheet. For detailed answer refer to the supporting sheet.
ekkarill92 answered 2 years agoRelated Solutions
Statement of Profit or Loss and Other Comprehensive Income for the year ended 31 December 2018...
Statement of Profit or Loss and Other
Comprehensive Income for the year ended 31 December
2018
RM
RM
Sales
(-) Cost of sales:
Opening inventory
(+) Purchases
(-) Closing inventory
Gross Profit
(+) Revenues:
Discount received
Commission received
(-) Expenses:
Salaries and wages
Repair and maintenance
Net Profit
25,000
200,000
(15,000)
10,000
8,300
41,300
100,000
450,000
(210,000)
240,000
18,300
(141,300)
117,000
Statement of Financial Position as at 31
December 2018
RM
RM
Non-current Assets
Building
Motor vehicles
Current Assets
Inventory...
For the year ended December 31, 2018, Norstar Industries reported net income of $655,000. At January...
For the year ended December 31, 2018, Norstar Industries
reported net income of $655,000. At January 1, 2018, the company
had 900,000 common shares outstanding. The following changes in the
number of shares occurred during 2018:
Apr.
30
Sold 60,000 shares in a public offering.
May
24
Declared and distributed a 5% stock dividend.
June
1
Issued 72,000 shares as part of the consideration for the
purchase of assets from a subsidiary.
Required:
Compute Norstar's earnings per share for...
Labels: Current assets Current liabilities December 31, 2018 Expenses For the Year Ended December 31, 2018...
Labels: Current assets Current liabilities December 31,
2018 Expenses For the Year Ended December 31, 2018 Property, plant,
and equipment Revenues Amount Descriptions: Book
value-building Book value-equipment Change in retained earnings Net
income Net loss Retained earnings, December 31, 2018 Retained
earnings, January 1, 2018 Total assets Total current assets Total
expenses Total liabilities Total liabilities and stockholders’
equity Total property, plant, and equipment Total revenues Total
stockholders’ equity
CHART OF ACCOUNTS
Lamp Light Company
General Ledger
ASSETS
11
Cash...
UK Ltd for the year ended 31 December 2018. Net Profit $500m Preference dividend $300m Share...
UK Ltd for the year ended 31 December 2018.
Net Profit
$500m
Preference dividend
$300m
Share outstanding- Average
4000m
Earnings effect
Shares effect
Convertible preference share
$300m
3000m
Convertible debt
$120m
3000m
Share options
5000m
The financial statements were authorized in late March 2019.
The diluted earnings per share for the year ended 31 December
2018 is 4.3 cents.
Required:
Assuming that the company made a one for two bonus issue on 3
January 2019. Calculate the diluted earnings per...
Vita Dental Agencies current fiscal year ended on December 31, 2018. For the year then ended,...
Vita Dental Agencies current fiscal year ended on December 31,
2018. For the year then ended, the company has reported an
unadjusted net income of $100,000. The owner has some doubt about
this figure and has asked you to review his accounting records.
Required: Make adjusting entries as at December 31,
2018 for the following information uncovered in your review (show
your calculations for full marks):
a) Vita occupied their new
building for the first time on May 1, 2018....
Chang Company reported the following for the year ended December 31, 2018:
Chang Company reported the following for the year ended December 31, 2018:
Gross sales revenue $750,000
Sales returns $ 30,000
Cost of goods sold $250,000
Selling and administrative expenses $100,000
Gain on disposal of the battery division; considered a discontinued operation $ 20,000
Loss from operations of the battery division $ 60,000
Interest expense $ 40,000
Gain on the sale of a fixed asset $ 10,000
Assume...
Extracts of the Statement of Comprehensive Income for the year ended 31 December 2018 and the...
Extracts of the Statement of Comprehensive Income for the year
ended 31 December 2018 and
the Statement of Financial Position as at 31 December 2018 are
given below for two companies
viz. Amazon Limited and Gibson
Extract of the Statement of Comprehensive Income for the year
ended 31 December 2018:
Amazon Limited
R
Gibson Limited
R
Sales
6 600 000
2 160 000
Cost of Sales
4 620 000
864 000
Gross profit
...
Income Statement For the Year Ended December 31, 2018 Sales &nb
Income Statement
For the Year Ended December 31, 2018
Sales
$8,500,000
Manufacturing Expenses
Variable
$3,250,000
Fixed
overhead
640,000
3,890,000
Gross
Margin
$4,610,000
Selling and administrative expenses
Commissions
$580,000
Fixed marketing expenses
300,000
Fixed admin expenses
450,000
1,330,000
Net Operating
Income
$3,280,000
Fixed Interest
expenses
230,000
Income before
Taxes
$3,050,000
Income Taxes
(21%)
640,500
Net
Income
$2,409,500
Your company is considering out-sourcing the sales and marketing
to an agency specializing in these types of sales....
Income Statement For the Year Ended December 31, 2018 Sales &nb
Income Statement
For the Year Ended December 31, 2018
Sales
$8,500,000
Manufacturing Expenses
Variable
$3,250,000
Fixed
overhead
640,000
3,890,000
Gross
Margin
$4,610,000
Selling and administrative expenses
Commissions
$580,000
Fixed marketing expenses
300,000
Fixed admin expenses
450,000
1,330,000
Net Operating
Income
$3,280,000
Fixed Interest
expenses
230,000
Income before
Taxes
$3,050,000
Income Taxes
(21%)
640,500
Net
Income
$2,409,500
Your company is considering out-sourcing the sales and marketing
to an agency specializing in these types of sales....
For the year ended December 31, 2015, Patsy Inc. had income from continuing operations of $1,500,000....
For the year ended December 31, 2015, Patsy Inc. had income from
continuing operations of $1,500,000. During 2015, it disposed of
its Calgary division at a loss before taxes of $125,000. Before the
disposal, the division operated at a before-tax loss of $150,000 in
2014 and $175,000 in 2015. Patsy also had an unrealized gain in its
Available-for-sale investments of $27,500 (net of tax). It accounts
for its investments in accordance with IAS 39. Patsy had 50,000
outstanding common shares...
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