Calculate the basic EPS amount

Assignment Help Accounting Basics
Reference no: EM132561110

Question - Alps Ltd has a net income after tax of $1 500 000 for the year ended 30 June 2019. At the beginning of the period Alps Ltd has 900 000 fully paid-up ordinary shares on issue. On 1 December 2018 Alps Ltd had issued a further 300 000 fully paid-up ordinary shares at an issue price of $2.00. On 1 March 2019 Alps Ltd made a one-for-six bonus issue of ordinary shares out of retained earnings. The last sale price of an ordinary share before the bonus issue was $2.50. At the beginning of the current period Alps Ltd also had 500 000, $1.00, 8% cumulative preference shares on issue. The dividends on the preference shares are not treated as expenses in the statement of comprehensive income. The basic earnings per share for the period ended 30 June 2018 was $1.50 per share.

Required -

a) Calculate the basic EPS amount for 2019 and provide the adjusted comparative EPS for 2018.

b) Explain what is diluted EPS. Give one example of a security that can dilute the basic EPS.

Reference no: EM132561110

Questions Cloud

What are the tax consequences to the shareholders : If the shareholders' average bases in their shares are $45 per share, what are the tax consequences to shareholders and the corporation from this distribution
What information should be included in the discussion : The nurse the nurse is reinforcing teaching regarding peptic ulcer disease health promotion and disease prevention
Describe the pathophysiology of crohn disease : Describe the pathophysiology of Crohn's disease. Describe the potential complications of an intestinal obstruction hat is not treated promptly.
Technological advances on medicine : 3D printed cast are being used to stabilize broken bones. But recently 3D printing has been used to design prosthetics
Calculate the basic EPS amount : Alps Ltd has a net income after tax of $1 500 000 for the year ended 30 June 2019. Calculate the basic EPS amount for 2019
Discuss the unit cm in equation form : Discuss the unit cm in equation form. Discuss the CM ratio in units and in total form. What do you understand by contribution margin
Discuss the impact on your nursing practice : To support your work, use your course and text readings and also use resources from the South University Online Library. As in all assignments.
Interim alternative educational setting : What services, if any, need to be provided to Charlie during his removal to an interim alternative educational setting (IAES)?
What are the cost of goods sold and the cost of work : What is the cost of goods manufactured? What are the cost of goods sold and the cost of work in process on January 1. 2022, respectively?

Reviews

Write a Review

Accounting Basics Questions & Answers

  You bought a home theatre 1 year back using hsbc bank

you bought a home theatre 1 year back using hsbc bank credit card. hsbc bank has sent you a bill now which shows that

  If the selling prices at the split-off point before further

joint products inc. produces two joint products x and v using a common input. these are produced in batches. the common

  Mcmichael publishers inc collects 10 of its sales on

mcmichael publishers inc. collects 10 of its sales on account in the month of the sale and 90 in the month following

  Preparing the monthly bank reconciliation

Identifying Internal Control Weaknesses in Descriptions of Cash Payment Processes Each situation below describes an internal control weakness.

  Record all entries associated with shelton purchase

Record all entries associated with Shelton's purchase of the inventory. For a compound transaction, if an amount box does not require an entry

  How many meals would have to be sold

Given the following: A college's food operation has an average meal price of $7.00. How many meals would have to be sold if variable costs increased 20%

  Prepare journal entries to record the maturity of the bond

Oneil Company issues 5%, two-year bonds, on December 31, 2011, with a par value of $100,000 and semiannual interest payments.

  On january 2 2012 indian river groves began construction of

on january 2 2012 indian river groves began construction of a new citrus processing plant. the automated plant was

  Compute the monthly break-even point for the new product

The product would sell for $2.50 per unit. Compute the monthly break-even point for the new product in units and in total dollar sales

  Prepare a statement of comprehensive income

Wildhorse Corporation reported the following for 2017: net sales $1,227,100, cost of goods sold $725,600, selling and administrative expenses $330,700.

  Determine the warranty liability

Determine the warranty liability at January 31, the end of the first month of the current year. What accounts are decreased for the warranty work provided in February?

  What is a market beta and how is determined

What is a market beta, and how is determined? What is the difference between a project's market beta and the business's or stock's market beta?

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