1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Ilya [14]
3 years ago
14

Francis Companyhas 24,000 shares of common stock outstanding at the beginning of 2019. Francis issued 3,000 additional shares on

May 1 and 2,000 additional shares on September 30. It also has two convertible securities outstanding at the end of 2019. These are:
1. Convertible preferred stock: 2,500 shares of 85%, 550 par, preferred stock were issued on january 2, 2016, for $60 per share. Each share of preferred stock is convertible into 3 shares of common stock. Current dividends have been declared and paid.
To date, no preferred stock has been converted.
2. Convertible bonds: Bonds with a face value of 250,000 and an interest rate of 5.5% were issued at par in 2018. Each $1,000 bond is convertible into 20 shares of common stock. To date, no bonds have been converted.

Francis earned net income of $72,500 during 2019. The income tax rate is 30%.

Required:

1. Compute the number of shares of common stock that Francis should use in calculating basic earnings per share for 2019.
2. Calculate basic earnings per share for 2019.
3. Calculate diluted earnings per share for 2019 and the incremental EPS of the preferred stock and convertible bonds.
4. Next level Assume the same facts as above except that net income included a loss from discontinued operations of $18,000 net of income taxes. Compute basic BPS and show how it should be reported to shareholders. You do not have to calculate diluted BPS for this case.
Business
1 answer:
Maru [420]3 years ago
7 0

Answer:

(1) The number of shares of common stock that Francis should use in calculating basic earnings per share for 2019 :

                                         = 24000 + 3000 + 2000

                                         = 29000

(2) Basic EPS for 2019

                   EPS = net income / outstanding shares

                           = 72500 / 29000

                           =  2.5

(3) Diluted EPS for 2019

           Diluted EPS = (net income - preferred stock dividned )/ (Common               Shares Outstanding + Unexercised Employee Stock Options + Convertible Preferred Stocks + Convertible Debt + Warrants)

                           =  72500/(29000+ 2500 + 250 )

                            = 2.28            

You might be interested in
The manager of the Boston Red Sox notices that his outfield star, Fenway Fred, has gone hitless in his last ten at bats. Which m
Zepler [3.9K]

Answer:

controlling

Explanation:

Based on the information provided within the question it can be said that the manager is performing the management function known as controlling. This function focuses on analyzing a situation and checking for errors in order to be able to take corrective actions. Which in this scenario, by seeing that the outfield star is having a problem getting hits, the manager can now take appropriate measures to try and solve this problem.

7 0
3 years ago
Kinsi Corporation manufactures five different products. All five of these products must pass through a stamping machine in its f
marissa [1.9K]

Answer:

Also please mark brainslet and sorry if wrong. Have a blessed day!:)

Explanation:

All five of these products must pass through a stamping machine ... ... All Five Of These Products Must Pass Through A Stamping Machine In Its Fabrication Department. This Machine Is Kinsi's Constrained Resource. Kinsi Would Make The Most Profit If It Produces The Product That: A)

8 0
3 years ago
Suppose that an American-made pair of blue jeans has a price of $80. If the exchange rate is $0.095 = 1 peso, then a Mexican con
Natasha2012 [34]

Answer:

The correct answer is 842.1 Pesos and 941.18 Pesos.

Explanation:

According to the scenario, the given data are as follows:

Price of Jeans = $80

So, if exchange rate is $0.095 = 1 pesos

Then pesos required to buy that jeans can be calculated as follows:

Pesos required = $80 ÷ $0.095

= 842.1 Pesos

And if 1 Pesos = $0.085, then

Pesos required = $80 ÷ $0.085

= 941.18 Pesos

8 0
3 years ago
Prior to closing, a final walkthrough of the property should be performed to ensure that everything has remained as stated in th
Galina-37 [17]

Answer:

D. Buyer

Explanation:

The buyer is the one who is interested in purchasing the property and becoming the new owner. A walkthrough which involves inspecting the property and making sure everything has remained stated and is in order is done by the buyer who is interested in owning the property. A buyer can always demand for a walkthrough. The walk through gives the buyer time to inspect the property before closing.

8 0
3 years ago
The recording of business transactions is a basic part of financial reporting and is referred to as:.
Karo-lina-s [1.5K]

The recording of business transactions is a basic and fundamental component of financial reporting and is known as<u> bookkeeping.</u>

<h3>What is Bookkeeping?</h3>

Bookkeeping is the process of recording financial transactions.  It entails preparing reference papers for all company transactions, activities, and other occurrences.

The primary goal of bookkeeping is to maintain a comprehensive and precise record of all operations and transactions in a methodical, ordered, and logical way. This guarantees that the financial consequences of these activities are accounted for in the accounting books.

Learn more about Bookkeeping here:

brainly.com/question/25572872

4 0
2 years ago
Other questions:
  • Cathy uses, on her new recording drive by, the melody of a song written by earl, without earl's permission. this is
    8·1 answer
  • ​The monthly salaries of a sample of 100 employees were rounded to the nearest $10. They ranged from a low of $1,040 to a high o
    12·1 answer
  • Expert systems are used when: predictions for the future are required. patterns of consumer behavior need to be investigated. Bi
    12·1 answer
  • Fritters, a fast food restaurant chain, known for its quick meals encountered an instance where a customer had blamed its food f
    14·1 answer
  • Impact of 2020 lockdown on world's business economy?
    9·1 answer
  • J.P. Morgan Chase &amp; Company wanted to hire the children of prominent Chinese officials. Considering legal and ethical standa
    8·1 answer
  • Martha used a SWOT analysis to assess her own internal business plan. Her store would cater to students who could also use the l
    8·1 answer
  • When the economy is in full employment, * 10 points A. unemployment is zero. B. only cyclical unemployment is zero. C. only fric
    12·1 answer
  • Who is the founder of royal crown hotel ??
    11·1 answer
  • Imagine that you manage a toy store. You have one employee who does a fantastic job. Your other employee needs improvement. Choo
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!