1. On January 1, 2024, XYZ Company had 200,000 shares of $0.25 par common stock outstanding. On May 1, 2024, XYZ sold 30,000 shares of common stock for $56 per share. XYZ had the following preferred stock and bonds outstanding at January 1, 2024. All securities had been sold at par or face value. Issue Date 5/1/2018 1/1/2021 1/1/2023 6/30/2023 12/31/2023 Type of Security 12%, $1,000 bonds, $750,000 6% cumulative convertible preferred stock, $100 par, 40,000 shares outstanding 6%, convertible $1,000 bonds, $1,000,000 10%, convertible $1,000 bonds, $600,000 8%, cumulative preferred stock, $50 par, 12,500 shares outstanding Conversion Terms None 4 shares common for each share of preferred 15 shares common for each $1,000 bond 30 shares of common for each $1,000 bond None XYZ had stock options outstanding at January 1, 2024, for the purchase of 20,000 shares of common stock for $30 per share. The average market price of the common stock for 2024 was $60 per share. XYZ paid no dividends during 2024. The 2024 net income was $1,026,000. The income tax rate is 30%.
1. On January 1, 2024, XYZ Company had 200,000 shares of $0.25 par common stock outstanding. On May 1, 2024, XYZ sold 30,000 shares of common stock for $56 per share. XYZ had the following preferred stock and bonds outstanding at January 1, 2024. All securities had been sold at par or face value. Issue Date 5/1/2018 1/1/2021 1/1/2023 6/30/2023 12/31/2023 Type of Security 12%, $1,000 bonds, $750,000 6% cumulative convertible preferred stock, $100 par, 40,000 shares outstanding 6%, convertible $1,000 bonds, $1,000,000 10%, convertible $1,000 bonds, $600,000 8%, cumulative preferred stock, $50 par, 12,500 shares outstanding Conversion Terms None 4 shares common for each share of preferred 15 shares common for each $1,000 bond 30 shares of common for each $1,000 bond None XYZ had stock options outstanding at January 1, 2024, for the purchase of 20,000 shares of common stock for $30 per share. The average market price of the common stock for 2024 was $60 per share. XYZ paid no dividends during 2024. The 2024 net income was $1,026,000. The income tax rate is 30%.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Instructions: Compute the basic and diluted earnings per share for XYZ for 2024. Round to two decimal places. Show all computations.
Transcribed Image Text:1. On January 1, 2024, XYZ Company had 200,000 shares of $0.25 par common stock
outstanding. On May 1, 2024, XYZ sold 30,000 shares of common stock for $56 per
share.
XYZ had the following preferred stock and bonds outstanding at January 1, 2024. All
securities had been sold at par or face value.
Issue Date
5/1/2018
1/1/2021
1/1/2023
6/30/2023
12/31/2023
Type of
Security
12%, $1,000 bonds, $750,000
6% cumulative convertible preferred
stock,
$100 par, 40,000 shares outstanding
6%, convertible $1,000 bonds, $1,000,000
10%, convertible $1,000 bonds, $600,000
8%, cumulative preferred stock, $50 par,
12,500 shares outstanding
Conversion Terms
None
4 shares common for
each share of
preferred
15 shares common for
each $1,000 bond
30 shares of common
for each $1,000 bond
None
XYZ had stock options outstanding at January 1, 2024, for the purchase of 20,000 shares
of common stock for $30 per share. The average market price of the common stock for
2024 was $60 per share.
XYZ paid no dividends during 2024. The 2024 net income was $1,026,000. The income tax
rate is 30%.
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