At December 31, 19x4, Back Company had 350,000 shares of common stock outstanding. On September 1, 19x5, an additional 150,000 shares of common stock were issued. In addition, Back had P10,000,000 of 8 percent convertible bonds outstanding at December 31, 19x4, which are convertible into 200,000 shares of common stock. The bonds were considered potential common shares at the time of their issuance and no bonds were converted into common stock in 19x5. The net income tax rate was 50 percent, what should be the diluted earnings per share for the year ended December 31, 19x5? (SHOW SOLUTION) a. P4.33 b. P5.00 c. P5.67 d. P7.50 If the accounts receivable turnover is five times, then the average number of days to collect accounts receivable is approximately: a. 50 days b. 65 days c. 70 days d. 91 days
At December 31, 19x4, Back Company had 350,000 shares of common stock outstanding. On September 1, 19x5, an additional 150,000 shares of common stock were issued. In addition, Back had P10,000,000 of 8 percent convertible bonds outstanding at December 31, 19x4, which are convertible into 200,000 shares of common stock. The bonds were considered potential common shares at the time of their issuance and no bonds were converted into common stock in 19x5. The net income tax rate was 50 percent, what should be the diluted earnings per share for the year ended December 31, 19x5? (SHOW SOLUTION) a. P4.33 b. P5.00 c. P5.67 d. P7.50 If the accounts receivable turnover is five times, then the average number of days to collect accounts receivable is approximately: a. 50 days b. 65 days c. 70 days d. 91 days
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
At December 31, 19x4, Back Company had 350,000 shares of common stock outstanding. On September 1, 19x5, an additional 150,000 shares of common stock were issued. In addition, Back had P10,000,000 of 8 percent convertible bonds outstanding at December 31, 19x4, which are convertible into 200,000 shares of common stock. The bonds were considered potential common shares at the time of their issuance and no bonds were converted into common stock in 19x5. The net income tax rate was 50 percent, what should be the diluted earnings per share for the year ended December 31, 19x5? (SHOW SOLUTION)
a. P4.33
b. P5.00
c. P5.67
d. P7.50
If the
a. 50 days
b. 65 days
c. 70 days
d. 91 days
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 1 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education