Calculate basic and dilutive earnings per share

Assignment Help Accounting Basics
Reference no: EM131997255

Question - Diluted EPS Problem

Net income for the Zipper Company in 2013 was $1,400,000.

Zipper issued in 2012, at par, 75, $1,000, 8% bonds, each convertible into 100 shares of common stock.

Zipper issued in 2011, 40,000 shares of 6% convertible, cumulative preferred stock, $100 par value. Each share is convertible into 1 share of common stock.

Zipper had outstanding 1,000 options issued during 2012, each exercisable for one share at $8. None has been exercised. The average market price of the stock during 2013 was $20.

Zipper's tax rate is 40%.

Date Event Shares outstanding

Jan 1, 2013 Beginning balance 180,000

March 1 Issued 60,000 shares

June 1 Purchased 78,000 treasury stock

Nov 1 Issued 120,000 shares

Nov 15 Issued 2 for 1 stock split

Required:

Calculate Basic and Dilutive Earnings per Share (show all calculations)

Use the treasury stock method for the options (if necessary).

Reference no: EM131997255

Questions Cloud

Delegate model in making decision : a.? Make an argument that Aquidneck should follow the delegate model in making her decision.
Validate the system design using interaction diagrams : ITC508 -You are required to validate the system design using interaction diagrams (i.e., communication diagrams or sequence diagrams) for at least one subsystem
How would you interpret the difference : Melissa is trying to value ABC Company's stock, which is clearly not growing at all. ABC declared and paid a $5 dividend last year.
Key differences between the world : Compare and contrast at least three (3) key differences between the world before 1945 and the world after that year with respect to international relations.
Calculate basic and dilutive earnings per share : Zipper issued in 2012, at par, 75, $1,000, 8% bonds, each convertible into 100 shares of common stock. Calculate Basic and Dilutive Earnings per Share
What is the net present value of the worst-case scenario : The Meldrum Co. is analyzing a proposed project. The company expects to sell 3,000 units, give or take 15 percent. The expected variable cost per unit is $8.
Determine someone fitness for us citizenship : If you had been one of these judges, what question would you ask to determine someone's fitness for US citizenship?
Regards to meeting their economic goals : Do you and others think that a capitalist authoritarian regime has a leg up on democracies in regards to meeting their economic goals?
Explain the methods of assigning costs to ending inventory : For this discussion, identify and explain the four methods of assigning costs to ending inventory and cost of goods sold

Reviews

Write a Review

Accounting Basics Questions & Answers

  Determine the standard cost per dining room table

Hickory Furniture Company manufactures unfinished oak furniture. Hickory uses a standard cost system. Determine the standard cost per dining room table

  Calculate rate to be used to apply manufacturing overhead

During the year, the company incurred overhead costs of $925,000, Calculate the rate to be used to apply manufacturing overhead costs to products

  Given the following how did the cvp change assuming cars

given the following how did the cvp change? assuming cars are always waiting to order 24 hours per day and the kitchen

  Estimate the market values of the assets

Leland Co. paid $2,100,000 for a purchase that included land, building, and office furniture. An appraiser provided the following estimates of the market.

  Orange company manufactures calculators during the month

orange company manufactures calculators. during the month 25000 of raw materials were purchased and the warehouse

  Prepare the july entry for cheyenne corporation

The recorded amounts all approximate current values except for land (fair value of $60,400), Prepare July 1 entry for Cheyenne Corporation to record purchase

  What total amount of expenses relating to these two items

What total amount of expenses relating to these two items should Philo report in its quarterly income statement for the three months ended June 30

  Error analysis and correcting entry

You have been engaged to review the financial statements of Gottschalk Corporation. In the course of your examination you conclude that the bookkeeper hired during the current year is not doing a good job. You notice a number of irregularities as ..

  Cost-information system is a function of a number of design

a formal presentation to members of the board. Thus, your writing should be concise, clear, and reflective of proper grammar and construction

  Compute what is the gain recognized

Person A purchases a share of stock on 1/1/2013 for $1.00. Person A purchased another share of stock on 2/1/2013 for $2.00. What is the gain recognized?

  Accounting records problem

Justings Co. owned 80% of Evana Corp. During 2006, Justings sold to Evana land with a book value of $48,000. The selling price was $70,000. In its accounting records, Justings should:

  What was the required investment for goates companys

each of the following scenarios is independent. assume that all cash flows are after-tax cash flows. 1.southward

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd