At the end of the year, the records of Luholtz Corporation show the following. Common stock, no-par, authorized 500,000 shares; issued and outstanding during the year, 100,000 shares Stock dividend issued, December 31, 50,000 shares (not included in 100,000 shares above) Retained earnings (after effect of dividends on all shares) Bonds payable, 4.5%; each $1,000 bond is convertible to 80 shares of common stock after the stock dividend (bonds issued at par two years prior) Bonds payable, 6.5%; each $1,000 bond is convertible to 90 shares of common stock after the stock dividend (bonds issued at par two years prior) Net income Income tax rate, 25% Required Prepare the required EPS presentation for the year. Basic EPS 4.5% Convertible bonds Adjustment to net income available to common stockholders Adjustment to common shares outstanding Tentative diluted EPS 6.5% Convertible bonds Adjustment to net income available to common stockholders Adjustment to common shares outstanding Tentative diluted EPS Basic earnings per share $ Diluted earning per share $ Net Income Available to Common Stockholders 222.000 ✓ 0 x 0x 5 $ $ 202.600 x 222,000 * 0 x 0x/ Weighted Avg. Common Shares Outstanding 150,000 35,000,000 x $ 185,000 = $ 0x 0x-5 Per • Note: Enter below, the applicable results from the information above, EXACTLY as shown above. Share 1.48 Dilutive or Anti-dilutive 1.2 Dilutive Dilutive + ✓ + $680,000 340,000 500,000 100,000 300,000 222,000
At the end of the year, the records of Luholtz Corporation show the following. Common stock, no-par, authorized 500,000 shares; issued and outstanding during the year, 100,000 shares Stock dividend issued, December 31, 50,000 shares (not included in 100,000 shares above) Retained earnings (after effect of dividends on all shares) Bonds payable, 4.5%; each $1,000 bond is convertible to 80 shares of common stock after the stock dividend (bonds issued at par two years prior) Bonds payable, 6.5%; each $1,000 bond is convertible to 90 shares of common stock after the stock dividend (bonds issued at par two years prior) Net income Income tax rate, 25% Required Prepare the required EPS presentation for the year. Basic EPS 4.5% Convertible bonds Adjustment to net income available to common stockholders Adjustment to common shares outstanding Tentative diluted EPS 6.5% Convertible bonds Adjustment to net income available to common stockholders Adjustment to common shares outstanding Tentative diluted EPS Basic earnings per share $ Diluted earning per share $ Net Income Available to Common Stockholders 222.000 ✓ 0 x 0x 5 $ $ 202.600 x 222,000 * 0 x 0x/ Weighted Avg. Common Shares Outstanding 150,000 35,000,000 x $ 185,000 = $ 0x 0x-5 Per • Note: Enter below, the applicable results from the information above, EXACTLY as shown above. Share 1.48 Dilutive or Anti-dilutive 1.2 Dilutive Dilutive + ✓ + $680,000 340,000 500,000 100,000 300,000 222,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:At the end of the year, the records of Luholtz Corporation show the following.
Common stock, no-par, authorized 500,000 shares; issued and outstanding during the year, 100,000
shares.
Stock dividend issued, December 31, 50,000 shares (not included in 100,000 shares above)
Retained earnings (after effect of dividends on all shares)
Bonds payable, 4.5%; each $1,000 bond is convertible to 80 shares of common stock after the stock
dividend (bonds issued at par two years prior)
Bonds payable, 6.5%; each $1,000 bond is convertible to 90 shares of common stock after the stock
dividend (bonds issued at par two years prior)
Net income
Income tax rate, 25%
Required
Prepare the required EPS presentation for the year.
Basic EPS
4.5% Convertible bonds
Adjustment to net income available to common stockholders
Adjustment to common shares outstanding
Tentative diluted EPS
6.5% Convertible bonds
Adjustment to net income available to common stockholders
Adjustment to common shares outstanding
Tentative diluted EPS
Basic earnings per share $
Diluted earning per share $
Net Income
Available to
Common
Stockholders
222,000 ✓
0 x
0x
$
S
202,600 x
222,000 *
0 x
0x/
Weighted
Avg. Common
Shares
Outstanding
150.000 = $
35,000,000 x
185,000 = $
0x
0x = $
Per
• Note: Enter below, the applicable results from the information above, EXACTLY as shown above.
Share
1.48
Dilutive or
Anti-dilutive
1.2 Dilutive
Dilutive
+
+ ✓
$680,000
340,000
500,000
100,000
300,000
222,000
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