Question

During the current year, Chewie Inc., had outstanding: 30,000 shares of common stock; 8,000 shares of...

During the current year, Chewie Inc., had outstanding: 30,000 shares of common stock; 8,000 shares of $100 par, 10% cumulative preferred stock; and 3,500 bonds that are $1,000 par and 8% convertible. The bonds were originally issued at par, and each bond was convertible into 10 shares of common stock. During the year, net income was $250,000, no dividends were declared, and the tax rate was 30%.

What amount was Chewie's basic earnings per share for the current year?

Round to the nearest cent (i.e. 3.4567 would round to 3.46).

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
1.On December 31, 2015, Emmanuel Company had 65,000 shares of common stock issued and outstanding. Emmanuel...
1.On December 31, 2015, Emmanuel Company had 65,000 shares of common stock issued and outstanding. Emmanuel issued a 11% stock dividend on June 30, 2016. On October 1, 2016, 18,000 shares of common stock were reacquired as treasury stock. What is the appropriate number of shares to be used in the basic earnings per share computation for 2016? 2. Ellen Kelly Inc. had 49,000 shares of $.50 par common stock 14,000 shares of 5%, $20 par cumulative preferred stock and...
Ahnberg Corporation had 560,000 shares of common stock issued and outstanding at January 1. No common...
Ahnberg Corporation had 560,000 shares of common stock issued and outstanding at January 1. No common shares were issued during the year, but on January 1, Ahnberg issued 180,000 shares of convertible preferred stock. The preferred shares are convertible into 360,000 shares of common stock. During the year Ahnberg paid $108,000 cash dividends on the preferred stock. Net income was $1,060,000. What were Ahnberg's basic and diluted earnings per share for the year? (Round your answers to 2 decimal places.)...
Monsieur Company had 80,000 shares of common stock outstanding during 2020 and 2,000 shares of cumulative...
Monsieur Company had 80,000 shares of common stock outstanding during 2020 and 2,000 shares of cumulative 6%, $100 par preferred stock, each convertible into 5 shares of common stock with  $1 par value per share. The company’s tax rate is 25%. During 2020, Monsieur Company declared and paid $5,000 in preferred dividends and no common stock dividends. Monsieur Company reported net income of $318,000 in 2020. Compute basic and diluted EPS for 2020.                Basic EPS     Diluted EPS   $3.83             $3.40    $3.91            $3.53...
Ahnberg Corporation had 700,000 shares of common stock issued and outstanding at January 1. No common...
Ahnberg Corporation had 700,000 shares of common stock issued and outstanding at January 1. No common shares were issued during the year, but on January 1, Ahnberg issued 320,000 shares of convertible preferred stock. The preferred shares are convertible into 640,000 shares of common stock. During the year Ahnberg paid $192,000 cash dividends on the preferred stock. Net income was $2,362,000. What were Ahnberg's basic and diluted earnings per share for the year? (Round your answers to 2 decimal places.)
22) Lewis, Inc. began the year with 300,000 shares of common stock and 25,000 shares of...
22) Lewis, Inc. began the year with 300,000 shares of common stock and 25,000 shares of 6%, $100 par value, cumulative, convertible preferred stock. Each share of preferred stock is convertible into 4 shares of common stock. On June 30, it purchased 10,000 shares of treasury stock. On November 1, Lewis declared a 2 for 1 stock split. Net income for the year was $850,000. Compute weighted average shares of common stock for the year, basic EPS, and diluted EPS.
During the current year, High Corporation had 4.9 million shares of common stock outstanding. $7,875,000 of...
During the current year, High Corporation had 4.9 million shares of common stock outstanding. $7,875,000 of 20% convertible bonds were issued at face amount at the beginning of the year. High reported income before tax of $5.9 million and net income of $4.9 million for the year. The bonds are convertible into 815,000 shares of common. What is diluted EPS (rounded)?
On January 1, 2018, Tonge Industries had outstanding 680,000 common shares ($1 par) that originally sold...
On January 1, 2018, Tonge Industries had outstanding 680,000 common shares ($1 par) that originally sold for $20 per share, and 4,000 shares of 10% cumulative preferred stock ($100 par), convertible into 40,000 common shares. On October 1, 2018, Tonge sold and issued an additional 20,000 shares of common stock at $35. At December 31, 2018, there were 21,000 incentive stock options outstanding, issued in 2017, and exercisable after one year for 21,000 shares of common stock at an exercise...
During the current year, High Corporation had 5.0 million shares of common stock outstanding. $8,025,000 of...
During the current year, High Corporation had 5.0 million shares of common stock outstanding. $8,025,000 of 17% convertible bonds were issued at face amount at the beginning of the year. High reported income before tax of $6.0 million and net income of $5.0 million for the year. The bonds are convertible into 825,000 shares of common. What is diluted EPS (rounded)? Choices are 1.09 2.73 1.23 1.05
Tabb Corp has 9,293 shares of common stock outstanding at the beginning of the year. Net...
Tabb Corp has 9,293 shares of common stock outstanding at the beginning of the year. Net income was $359,293. No dividends were paid this year nor last year. On March 1st, the company purchased 2,000 shares of its common stock and held it in treasury. There was a 2 for 1 stock split that occurred on common stock on Dec. 1. The tax rate is 30%. A $1,500,000, 5% nonconvertible bond was issued June 30 of the current year at...
During 2016, Pete, Inc. had the following convertible securities outstanding: $220,000 of 10%, $100 par, cumulative...
During 2016, Pete, 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. D.     $150,000 of 11%, $100 par, cumulative preferred stock. Each share is convertible into 5 shares of common stock....
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT