Patty Zeema, controller at Sabbie Fashion Inc., a public company has providedselected financial data for the fiscal year ended December 31, 2019.Long-term debt6% convertible bonds payable due 2021 (note 1)$3,000,000Shareholders' equity$2 convertible, cumulative Preferred Shares, no par value,200,000 shares authorized, 40,000 shares issued(each convertible preferred share is converted into 2 common shares) (note 2)$1,800,000Common Shares, unlimited number of shares authorized,1,100,000 shares outstanding at December 31, 2019 (assume this number forweighted average number of shares)$3,500,000Notes:1. The 6% bond was issued at face value on January 1, 2019. They are convertibleinto common shares at 30 shares per $1,000 bond.2. There are no preferred dividends in arrears. All prescribed preferred dividendswere declared and paid in fiscal year 2019.3. Net income for fiscal year 2019 was $1,750,000.REQUIRED:a) For 2019, calculate Sabbie's Basic EPS.b) For 2019, calculate Sabbie's Dilutive EPS. Assume a tax rate of 32%.Show all your calculations.c) For this part only:Calculate Weighted Average number of shares given the following information:On January 1, 2019, Sabbie Fashion Inc. had 250,000 common shares outstanding. It hadthe following transactions in 2019 that affected common shares:February 1May 1July 1November 1Issued 150,000 common sharesIssued a 30% stock dividendIssued a 2 for I stock splitIssued 60,000 common shares

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Answered: 1, 40,000 shares issued $ d share is…

1, 40,000 shares issued $ d share is converted into 2 common shares) ed number of shares authorized, ding at December 31, 2019 (assume this of 2000)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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