Reference no: EM13567882

Amy Dyken, controller at Fitzgerald Pharmaceutical Industries, a public company, is currently preparing the calculation for basic and diluted earnings per share and the related disclosure for Fitzgerald's financial statements. Below is selected financial information for the fiscal year ended June 30, 2012.

FITZGERALD PHARMACEUTICAL INDUSTRIES SELECTED BALANCE SHEET INFORMATION JUNE 30, 2012
Long-term debt
Notes payable, 10%		$1,003,000
8% convertible bonds payable		5,108,000
10% bonds payable		6,086,000
Total long-term debt		$12,197,000
Shareholders' equity
Preferred stock, 6% cumulative, $55 par value,103,800 shares authorized, 25,950 shares issued and outstanding		$1,427,250
Common stock, $1 par, 10,036,000 shares authorized,1,003,600 shares issued and outstanding		1,003,600
Additional paid-in capital		4,006,800
Retained earnings		6,012,200
Total shareholders' equity		$12,449,850

 

The following transactions have also occurred at Fitzgerald.

1.		Options were granted on July 1, 2011, to purchase 207,400 shares at $18 per share. Although no options were exercised during fiscal year 2012, the average price per common share during fiscal year 2012 was $30 per share.
2.		Each bond was issued at face value. The 8% convertible bonds will convert into common stock at 55 shares per $1,000 bond. The bonds are exercisable after 5 years and were issued in fiscal year 2011.
3.		The preferred stock was issued in 2011.
4.		There are no preferred dividends in arrears; however, preferred dividends were not declared in fiscal year 2012.
5.		The 1,003,600 shares of common stock were outstanding for the entire 2012 fiscal year.
6.		Net income for fiscal year 2012 was $1,589,000, and the average income tax rate is 45%.

For the fiscal year ended June 30, 2012, calculate the following for Fitzgerald Pharmaceutical Industries. (round to 2 decimal places)

A. Basic earnings per share.

B. Diluted earnings per share.