Question
Q3. Information from the financial statements of Henderson-Niles Industries included the following at December 31, 2016:...
Q3. Information from the financial statements of Henderson-Niles Industries included the following at December 31, 2016:
|
Common shares outstanding throughout the year |
100 |
million |
|
|
Convertible preferred shares (convertible into 25 million shares of common) |
75 |
million |
|
|
Convertible 10% bonds (convertible into 15.0 million shares of common) |
$ |
1,900 |
million |
Henderson-Niles’ net income for the year ended December 31, 2016, is $820 million. The income tax rate is 40%. Henderson-Niles paid dividends of $2 per share on its preferred stock during 2016.
Required:
- Compute basic earnings per share for the year ended December 31, 2016.
820-150 = 670
100
Basic = 670/100= 6.7
- The incremental effect of the conversion of the preferred stock is:
- The incremental effect of the conversion of the bonds is:
4. Are convertible preferred stock or convertible bonds dilutive or antidilutive?
- Compute diluted earnings per share for the year ended December 31, 2016.
820+114 = 934
100-15-25=40
934/140 = 6.67
Homework Answers
Answer #1
Not the answer you're looking for?
Similar Questions
Information from the financial statements of Ames Fabricators, Inc., included the following: December 31 2018...
Information from the financial statements of Ames Fabricators,
Inc., included the following:
December 31
2018
2017
Common
shares
100,000
100,000
Convertible
preferred shares
(convertible into 34,000 shares of common)
13,200
13,200
10% convertible
bonds
(convertible into 20,000 shares of common)
$
1,000,000
$
1,000,000
Ames’s net income for the year ended December 31, 2018, is
$520,000. The income tax rate is 40%. Ames paid dividends of $5 per
share on its preferred stock during 2018.
Required:
Compute basic and...
Information from the financial statements of Ames Fabricators, Inc., included the following: December 31 2021...
Information from the financial statements of Ames Fabricators,
Inc., included the following:
December 31
2021
2020
Common
shares
100,000
100,000
Convertible
preferred shares (convertible into 80,000 shares of common)
31,200
31,200
8% convertible
bonds (convertible into 30,000 shares of common)
$
1,000,000
$
1,000,000
Ames’s net income for the year ended December 31, 2021, is
$820,000. The income tax rate is 25%. Ames paid dividends of $5 per
share on its preferred stock during 2021.
Required:
Compute basic and...
Problem 19-14 (Algo) EPS; convertible preferred stock; convertible bonds; order of entry [LO19-7, 19-9, 19-10] Information...
Problem 19-14 (Algo) EPS; convertible preferred stock;
convertible bonds; order of entry [LO19-7, 19-9, 19-10]
Information from the financial statements of Henderson-Niles
Industries included the following at December 31, 2021:
Common shares outstanding throughout the year
100
million
Convertible preferred shares (convertible into 40 million
shares of common)
65
million
Convertible 8% bonds (convertible into 13.5 million shares of
common)
$
1,000
million
Henderson-Niles’s net income for the year ended December 31, 2021,
is $600 million. The income tax rate...
Information from the financial statements of Ames Fabricators, Inc., included the following: December 31 2021...
Information from the financial statements of Ames Fabricators,
Inc., included the following:
December 31
2021
2020
Common shares
100,000
100,000
Convertible preferred shares (convertible into 78,000 shares of
common)
30,000
30,000
8% convertible bonds (convertible into 30,000 shares of
common)
$
1,000,000
$
1,000,000
Ames’s net income for the year ended December 31, 2021, is
$800,000. The income tax rate is 25%. Ames paid dividends of $5 per
share on its preferred stock during 2021.
Required:
Compute basic and...
Information from the financial statements of Ames Fabricators, Inc., included the following: December 31 2021...
Information from the financial statements of Ames Fabricators,
Inc., included the following:
December 31
2021
2020
Common shares
100,000
100,000
Convertible preferred shares (convertible into 44,000 shares of
common)
15,600
15,600
8% convertible bonds (convertible into 30,000 shares of
common)
$
1,000,000
$
1,000,000
Ames’s net income for the year ended December 31, 2021, is
$560,000. The income tax rate is 25%. Ames paid dividends of $5 per
share on its preferred stock during 2021.
Required:
Compute basic and...
Information from the financial statements of Topps Fambricators, Inc., Included the following : Common shares 100,000...
Information from the financial statements of Topps Fambricators,
Inc., Included the following : Common shares 100,000 Convertible
preferred shares $100 par, 5% (convertible into 36,000 shares of
common) 12,000 10% convertible bonds (convertible into 25,000
shares of common) $1,000,000 Stock options for 120,000 shares of
common stock (option price of $20 per share; market price of $25
per share) Topps's net income for the year ended December 31,2018,
is $680,000. The income tax rate is 40%. Topps paid dividends of...
Information from the financial statements of Topps Fambricators, Inc., Included the following : Common shares 100,000...
Information from the financial statements of Topps Fambricators,
Inc., Included the following :
Common shares 100,000
Convertible preferred shares $100
par, 5% (convertible into 36,000 shares of common) 12,000
10% convertible bonds
(convertible into 25,000 shares of common) $1,000,000
Stock options for 120,000 shares
of common stock (option price of $20 per share; market price of $25
per share)
Topps's net income for the year ended December 31,2018, is
$680,000. The income tax rate is 40%. Topps...
Riggs Corporation has the following balance sheet information at December 31, 2016. Current liabilities $ 800,000...
Riggs Corporation has the following balance sheet information at
December 31, 2016.
Current
liabilities
$
800,000
Convertible bonds ($1,000 par,
5%)
2,000,000
Common stock ($1 par, 300,000
shares issued
300,000
Additional paid-in capital
2,100,000
Retained earnings
3,230,000
Treasury stock (43,000
shares)
(1,161,000
)
Total liabilities and
shareholders’ equity
$
7,269,000
The convertible bonds were issued at par in 2014 and are
convertible into Riggs’s common stock at a ratio of 15 shares of
stock to 1 bond. In its December...
On December 31, 2015, Berclair Inc. had 400 million shares of common stock and 5 million...
On December 31, 2015, Berclair Inc. had 400 million shares of
common stock and 5 million shares of 9%, $100 par value cumulative
preferred stock issued and outstanding. On March 1, 2016, Berclair
purchased 24 million shares of its common stock as treasury stock.
Berclair issued a 5% common stock dividend on July 1, 2016. Four
million treasury shares were sold on October 1. Net income for the
year ended December 31, 2016, was $550 million. The income tax rate...
At December 31, 2018, Galatia Inc. had 250,000 shares of common stock outstanding. On October 1,...
At December 31, 2018, Galatia Inc. had 250,000 shares of common
stock outstanding. On October 1, 2019, an additional 60,000 shares
of common stock were issued for cash. Galatia also had $2,000,000
of 10% convertible bonds outstanding at December 31, 2019, which
are convertible into 50,000 shares of common stock. The bonds are
dilutive in the 2019 earnings per share computation. No bonds were
issued or converted into common stock during 2019. What is the
number of shares that should...
ADVERTISEMENT
Need Online Homework Help?
Get Answers For Free
Most questions answered within 1 hours.
ADVERTISEMENT
Active Questions
asked 29 minutes ago
asked 46 minutes ago
asked 49 minutes ago
asked 52 minutes ago
asked 1 hour ago
asked 1 hour ago
asked 1 hour ago
asked 2 hours ago
asked 2 hours ago
asked 2 hours ago
asked 2 hours ago
asked 2 hours ago