Amy Dyken, controller at Fitzgerald Pharmaceutical Industries, a public company, is currently preparing the calculation for basic and diluted earnings per share and the related disclosure for Fitzgerald’s financial statements. Below is selected financial information for the fiscal year ended June 30, 2020. Fitzgerald Pharmaceutical Industries Selected Balance Sheet Information June 30, 2020 Long-term debt Notes payable, 10% $1,000,000 8% convertible bonds payable 5,000,000 10% bonds payable 6,000,000 Total long-term debt $12,000,000 Shareholders’ equity Preferred stock, 6% cumulative, $50 par value, 100,000 shares authorized, 25,000 shares issued and outstanding $1,250,000 Common stock, $1 par, 10,000,000 shares authorized, 1,000,000 shares issued and outstanding 1,000,000 Additional paid-in capital 4,000,000 Retained earnings 6,000,000 Total shareholders’ equity $12,250,000 The following transactions have also occurred at Fitzgerald. 1. Options were granted on July 1, 2019, to purchase 200,000 shares at $15 per share. Although no options were exercised during fiscal year 2020, the average price per common share during fiscal year 2020 was $20 per share. 2. Each bond was issued at face value. The 8% convertible bonds will convert into common stock at 50 shares per $1,000 bond. The bonds are exercisable after 5 years and were issued in fiscal year 2019. 3. The preferred stock was issued in 2019. 4. There are no preferred dividends in arrears; however, preferred dividends were not declared in fiscal year 2020. 5. The 1,000,000 shares of common stock were outstanding for the entire 2020 fiscal year. 6. Net income for fiscal year 2020 was $1,500,000, and the average income tax rate is 20%. For the fiscal year ended June 30, 2020, calculate the following for Fitzgerald Pharmaceutical Industries. (Round answers to 2 decimal places, e.g. $2.45.) (a) Basic earnings per share. Basic earnings per share $ (b) Diluted earnings per share. Diluted earnings per share $

Amy Dyken, controller at Fitzgerald Pharmaceutical Industries, a public company, is currently preparing the calculation for basic and diluted earnings per share and the related disclosure for Fitzgerald’s financial statements. Below is selected financial information for the fiscal year ended June 30, 2020. Fitzgerald Pharmaceutical Industries Selected Balance Sheet Information June 30, 2020 Long-term debt Notes payable, 10% $1,000,000 8% convertible bonds payable 5,000,000 10% bonds payable 6,000,000 Total long-term debt $12,000,000 Shareholders’ equity Preferred stock, 6% cumulative, $50 par value, 100,000 shares authorized, 25,000 shares issued and outstanding $1,250,000 Common stock, $1 par, 10,000,000 shares authorized, 1,000,000 shares issued and outstanding 1,000,000 Additional paid-in capital 4,000,000 Retained earnings 6,000,000 Total shareholders’ equity $12,250,000 The following transactions have also occurred at Fitzgerald. 1. Options were granted on July 1, 2019, to purchase 200,000 shares at $15 per share. Although no options were exercised during fiscal year 2020, the average price per common share during fiscal year 2020 was $20 per share. 2. Each bond was issued at face value. The 8% convertible bonds will convert into common stock at 50 shares per $1,000 bond. The bonds are exercisable after 5 years and were issued in fiscal year 2019. 3. The preferred stock was issued in 2019. 4. There are no preferred dividends in arrears; however, preferred dividends were not declared in fiscal year 2020. 5. The 1,000,000 shares of common stock were outstanding for the entire 2020 fiscal year. 6. Net income for fiscal year 2020 was $1,500,000, and the average income tax rate is 20%. For the fiscal year ended June 30, 2020, calculate the following for Fitzgerald Pharmaceutical Industries. (Round answers to 2 decimal places, e.g. $2.45.) (a) Basic earnings per share. Basic earnings per share $ (b) Diluted earnings per share. Diluted earnings per share $

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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Fitzgerald Pharmaceutical Industries Selected Balance Sheet Information June 30, 2020
Long-term debt
Notes payable, 10%		$1,000,000
8% convertible bonds payable		5,000,000
10% bonds payable		6,000,000
Total long-term debt		$12,000,000

Shareholders’ equity
Preferred stock, 6% cumulative, $50 par value, 100,000 shares authorized, 25,000 shares issued and outstanding		$1,250,000
Common stock, $1 par, 10,000,000 shares authorized, 1,000,000 shares issued and outstanding		1,000,000
Additional paid-in capital		4,000,000
Retained earnings		6,000,000
Total shareholders’ equity		$12,250,000

The following transactions have also occurred at Fitzgerald.

1.		Options were granted on July 1, 2019, to purchase 200,000 shares at $15 per share. Although no options were exercised during fiscal year 2020, the average price per common share during fiscal year 2020 was $20 per share.
2.		Each bond was issued at face value. The 8% convertible bonds will convert into common stock at 50 shares per $1,000 bond. The bonds are exercisable after 5 years and were issued in fiscal year 2019.
3.		The preferred stock was issued in 2019.
4.		There are no preferred dividends in arrears; however, preferred dividends were not declared in fiscal year 2020.
5.		The 1,000,000 shares of common stock were outstanding for the entire 2020 fiscal year.
6.		Net income for fiscal year 2020 was $1,500,000, and the average income tax rate is 20%.

For the fiscal year ended June 30, 2020, calculate the following for Fitzgerald Pharmaceutical Industries. (Round answers to 2 decimal places, e.g. $2.45.)

(a) Basic earnings per share.

Basic earnings per share

(b) Diluted earnings per share.

Diluted earnings per share

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

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