Question
In 2019, Splish Enterprises issued, at par, 60 $1,000, 9% bonds, each convertible into 100 shares...
In 2019, Splish Enterprises issued, at par, 60 $1,000, 9% bonds,
each convertible into 100 shares of common stock. Splish had
revenues of $15,600 and expenses other than interest and taxes of
$8,500 for 2020. (Assume that the tax rate is 20%.) Throughout
2020, 1,700 shares of common stock were outstanding; none of the
bonds was converted or redeemed.
(a) Compute diluted earnings per share for 2020.
(Round answer to 2 decimal places, e.g.
$2.55.)
| Earnings per share |
$ |
(b) Assume the same facts as those assumed for
part (a), except that the 60 bonds were issued on September 1, 2020
(rather than in 2019), and none have been converted or redeemed.
Compute diluted earnings per share for 2020. (Round
answer to 2 decimal places, e.g. $2.55.)
| Earnings per share |
$ |
(c) Assume the same facts as assumed for part (a),
except that 20 of the 60 bonds were actually converted on July 1,
2020. Compute diluted earnings per share for 2020.
(Round answer to 2 decimal places, e.g.
$2.55.)
| Earnings per share |
$ |
Homework Answers
Answer #1
I hope my efforts will be fruitful to you...?
Not the answer you're looking for?
Similar Questions
In 2016, Buffalo Enterprises issued, at par, 60 $1,000, 9% bonds, each convertible into 100 shares...
In 2016, Buffalo Enterprises issued, at par, 60 $1,000, 9%
bonds, each convertible into 100 shares of common stock. Buffalo
had revenues of $17,100 and expenses other than interest and taxes
of $8,100 for 2017. (Assume that the tax rate is 40%.) Throughout
2017, 2,400 shares of common stock were outstanding; none of the
bonds was converted or redeemed.
(a) Compute diluted earnings per share for
2017
(b) Assume the same facts as those assumed for
part (a), except that...
On January 1, 2020, Windsor Company issued 10-year, $2,010,000 face value, 6% bonds, at par. Each...
On January 1, 2020, Windsor Company issued 10-year, $2,010,000
face value, 6% bonds, at par. Each $1,000 bond is convertible into
15 shares of Windsor common stock. Windsor’s net income in 2020 was
$518,400, and its tax rate was 20%. The company had 108,000 shares
of common stock outstanding throughout 2020. None of the bonds were
converted in 2020.
(a) Compute diluted earnings per share for 2020.
(Round answer to 2 decimal places, e.g.
$2.55.)
Diluted earnings per share $...
On January 1, 2020, Shamrock Company issued 10-year, $1,880,000 face value, 6% bonds, at par. Each...
On January 1, 2020, Shamrock Company issued 10-year, $1,880,000
face value, 6% bonds, at par. Each $1,000 bond is convertible into
16 shares of Shamrock common stock. Shamrock’s net income in 2020
was $391,300, and its tax rate was 20%. The company had 91,000
shares of common stock outstanding throughout 2020. None of the
bonds were converted in 2020.
(a) Compute diluted earnings per share for 2020.
(Round answer to 2 decimal places, e.g.
$2.55.)
Diluted earnings per share
$enter...
On January 1, 2020, Skysong Company issued 10-year, $1,890,000 face value, 6% bonds, at par. Each...
On January 1, 2020, Skysong Company issued 10-year, $1,890,000
face value, 6% bonds, at par. Each $1,000 bond is convertible into
16 shares of Skysong common stock. Skysong’s net income in 2020 was
$470,000, and its tax rate was 20%. The company had 94,000 shares
of common stock outstanding throughout 2020. None of the bonds were
converted in 2020.
(a) Compute diluted earnings per share for 2020.
(Round answer to 2 decimal places, e.g.
$2.55.)
Diluted earnings per share
$enter...
On January 1, 2020, Monty Company issued 10-year, $2,060,000 face value, 6% bonds, at par. Each...
On January 1, 2020, Monty Company issued 10-year, $2,060,000
face value, 6% bonds, at par. Each $1,000 bond is convertible into
16 shares of Monty common stock. Monty’s net income in 2020 was
$414,100, and its tax rate was 20%. The company had 101,000 shares
of common stock outstanding throughout 2020. None of the bonds were
converted in 2020 (please explain how to do these problem without
using excel if possible).
(a) Compute diluted earnings per share for 2020.
(Round...
On January 1, 2017, Vaughn Company issued 10-year, $2,150,000 face value, 6% bonds, at par. Each...
On January 1, 2017, Vaughn Company issued 10-year, $2,150,000
face value, 6% bonds, at par. Each $1,000 bond is convertible into
16 shares of Vaughn common stock. Vaughn’s net income in 2017 was
$305,000, and its tax rate was 40%. The company had 97,000 shares
of common stock outstanding throughout 2017. None of the bonds were
converted in 2017. (a) Compute diluted earnings per share for 2017.
(Round answer to 2 decimal places, e.g. $2.55.) Diluted earnings
per share $...
On January 1, 2017, Andrew and Sons issued 10-year, $2,060,000 face value, 6% bonds, at par....
On January 1, 2017, Andrew and Sons issued 10-year, $2,060,000
face value, 6% bonds, at par. Each $1,000 bond is convertible into
16 shares of Andrew common stock. Andrew’s net income in 2017 was
$294,000, and its tax rate was 40%. The company had 101,000 shares
of common stock outstanding throughout 2017. None of the bonds were
converted in 2017.
(a) Compute diluted earnings per share for 2017.
(Round answer to 2 decimal places, e.g.
$2.55.)
Diluted earnings per
share...
Blossom Company’s net income for 2020 is $49,300. The only potentially dilutive securities outstanding were 1,200...
Blossom Company’s net income for 2020 is $49,300. The only
potentially dilutive securities outstanding were 1,200 options
issued during 2019, each exercisable for one share at $6. None has
been exercised, and 9,300 shares of common were outstanding during
2020. The average market price of Blossom’s stock during 2020 was
$18.
(a) Compute diluted earnings per share.
(Round answer to 2 decimal places, e.g.
$2.55.)
Diluted earnings per share
$
(b) Assume the same facts as those assumed for
part...
Question 29 --/6 View Policies Current Attempt in Progress Bonita Company’s net income for 2020 is...
Question 29
--/6
View Policies
Current Attempt in Progress
Bonita Company’s net income for 2020 is $49,200. The only
potentially dilutive securities outstanding were 1,100 options
issued during 2019, each exercisable for one share at $6. None has
been exercised, and 9,900 shares of common were outstanding during
2020. The average market price of Bonita’s stock during 2020 was
$15.
(a) Compute diluted earnings per share.
(Round answer to 2 decimal places, e.g.
$2.55.)
Diluted earnings per share
$
(b)...
In 2016, Blossom Ltd. issued $45,000 of 7% bonds at par, with each $1,000 bond being...
In 2016, Blossom Ltd. issued $45,000 of 7% bonds at par, with
each $1,000 bond being convertible into 100 common shares. The
company had revenues of $79,800 and expenses of $43,300 for 2017,
not including interest and taxes (assume a tax rate of 20%).
Throughout 2017, 1,800 common shares were outstanding, and none of
the bonds were converted or redeemed. (For simplicity, assume that
the convertible bonds’ equity element is not recorded.)
Calculate diluted earnings per share for the year...
ADVERTISEMENT
Need Online Homework Help?
Get Answers For Free
Most questions answered within 1 hours.
ADVERTISEMENT
Active Questions
asked 2 minutes ago
asked 7 minutes ago
asked 17 minutes ago
asked 29 minutes ago
asked 42 minutes ago
asked 43 minutes ago
asked 47 minutes ago
asked 48 minutes ago
asked 50 minutes ago
asked 1 hour ago
asked 1 hour ago
asked 1 hour ago