Calculate Sad basic EPS

Assignment Help Accounting Basics
Reference no: EM132846293

Question - Sad Man Inc. had 220,000 ordinary shares outstanding in all of 2022. On January 1, 2020, Sad issued at par $400,000 in 10% bonds maturing on January 1, 2028. Each $1,000 bond is convertible into 9 ordinary shares. Assume that the effective interest rate is 10%. There are 5,000 outstanding cumulative preferred shares that are each entitled to an annual dividend of $0.20. Dividends were not declared or paid during 2022. Each preferred share is convertible into three ordinary shares. Sad's net income for the year ended December 31, 2022 was $250,000. Its income tax rate was 35%.

Required -

a. Calculate Sad's basic EPS for 2022.

b. Are the convertible bonds dilutive or anti-dilutive in nature? The convertible preferred shares?

c. Calculate Sad's diluted EPS for 2022.

Reference no: EM132846293

Questions Cloud

What jesus meant by examining the historical background : What Jesus meant by examining the historical/cultural background of the original parable as well as its literary context (i.e., in the Gospels of Matthew)
List the challenge and describe the outlet : List the challenge and describe the outlet. For example, the Tibetan Club was a great outlet as explained in Snapshot Eugene Crocket.
Prepare a comparison of these two alternatives : Messer Company purchased equipment for $24,000. Prepare a comparison of these two alternatives for the first two years Messer will own the equipment
What steps promote democracy in today very diverse country : What steps do you think schools can or should take to promote our democracy in today's very diverse country? Food festivals and celebrating a cultural holiday.
Calculate Sad basic EPS : On January 1, 2020, Sad issued at par $400,000 in 10% bonds maturing on January 1, 2028. Calculate Sad's basic EPS for 2022
What concerns do have for the future of public education : Ask them describe any segregation, tracking or inequities by color, culture, SES (social economic status), or gender within the school they worked.
Compute the days sales uncollected : The SOS Company has Cash of $200, Net Accounts Receivable of $1000, and Net Sales of $12000. Compute the Days Sales Uncollected
Compute the amount of cash on hand to be presented : Check drawn by Derick payable to cashier 14,000. Compute the amount of cash on hand to be presented in the balance sheet at the end of December 31, 2020
How the knowledge of the course have been applied : How the knowledge, skills, or theories of this course have been applied, or could be applied, in a practical manner to your current work environment.

Reviews

Write a Review

Accounting Basics Questions & Answers

  Pell manufacturing is preparing its direct labor budget

pell manufacturing is preparing its direct labor budget for may. projections for the month are that 33400 units are to

  Jays technology finds that the total revenue function

jays technology finds that the total revenue function associated with producing a new type of computer chip is

  Discuss a house and maintained a minimum of sar

There are three members in Abdullah's Family. He has three cars, a house and maintained a minimum

  Why believe suggested internal control improvement

What recommendation do you have for management of Wilcoxon Sports, Inc., to prevent this from recurring?Why believe suggested internal control improvement

  What is a restrictive debt covenants

What is a restrictive debt covenants? Can we find these on which company's annual reports? What should be requirements and effects of these restrictive

  Determine the stock issue activity

Determine the Stock Issue Activity,Goofy Company issued 1,000 shares of $10 par common stock for $20,000.,Goofy Company issued an additional 2,000 shares

  What is the estimated dollar value of the inventory

On January 1, 2020, The gross profit rate on these sales was 35%. What is the estimated dollar value of the inventory at December 31

  Explain how you can avoid your financial interest

Explain how you can avoid your financial interest (personal interest) influencing your professional judgement

  Prepare a bank reconciliation as of november

Check No. 523 written to a creditor in the amount of $372.90 was recorded in the books as $327.90. Prepare a bank reconciliation as of November 30

  Calculate how much of the recognized gain is section

Calculate the recognized gain. Calculate how much of the recognized gain is Section 1231 gain and how much is Section 1245 recapture gain

  What is its debt to equity ratio

Refer to the statements for Arctic Cat in Appendix A.

  Determine the Basic EPS and Diluted EPS

The debt capital consisted of $600,000 worth of 5%, $1,000 convertible bonds. Determine the Basic EPS and Diluted EPS

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