Blossom Corp. had $670,000 net income in 2025. On January 1, 2025, there were 180,000 shares of common stock outstandin April 1, 18,800 shares were issued and on September 1, Blossom bought 35,400 shares of treasury stock. There are 28,000 options to buy common stock at $40 a share outstanding. The market price of the common stock averaged $50 during 2025. The tax rate is 40%. In 2025, there were 44,000 shares of convertible preferred stock outstanding. The preferred is $100 par, pays an annual dividend of $3.50 per share, and is convertible into three shares of common stock. Blossom issued $1,800,000 of 8% convertible bonds at face value during 2024. Each $1,000 bond is convertible into 30 shares of common stock. Complete the schedule and compute diluted earnings per share for 2025. (Round EPS answers to 2 decimal places, e.g. 52.75 and other answers to O decimal places, eg. 5241. Enter negative amounts using either a negative sign preceding the number eg. -45 or parentheses eg. (45).)
Blossom Corp. had $670,000 net income in 2025. On January 1, 2025, there were 180,000 shares of common stock outstandin April 1, 18,800 shares were issued and on September 1, Blossom bought 35,400 shares of treasury stock. There are 28,000 options to buy common stock at $40 a share outstanding. The market price of the common stock averaged $50 during 2025. The tax rate is 40%. In 2025, there were 44,000 shares of convertible preferred stock outstanding. The preferred is $100 par, pays an annual dividend of $3.50 per share, and is convertible into three shares of common stock. Blossom issued $1,800,000 of 8% convertible bonds at face value during 2024. Each $1,000 bond is convertible into 30 shares of common stock. Complete the schedule and compute diluted earnings per share for 2025. (Round EPS answers to 2 decimal places, e.g. 52.75 and other answers to O decimal places, eg. 5241. Enter negative amounts using either a negative sign preceding the number eg. -45 or parentheses eg. (45).)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Blossom Corp. had $670,000 net income in 2025. On January 1, 2025, there were 180,000 shares of common stock outstanding. On
April 1, 18,800 shares were issued and on September 1, Blossom bought 35,400 shares of treasury stock. There are 28,000 options to
buy common stock at $40 a share outstanding. The market price of the common stock averaged $50 during 2025. The tax rate is 40%.
In 2025, there were 44,000 shares of convertible preferred stock outstanding. The preferred is $100 par, pays an annual dividend of
$3.50 per share, and is convertible into three shares of common stock.
Blossom issued $1,800,000 of 8% convertible bonds at face value during 2024. Each $1,000 bond is convertible into 30 shares of
common stock.
Complete the schedule and compute diluted earnings per share for 2025. (Round EPS answers to 2 decimal places, e.g. 52.75 and other
answers to O decimal places, eg. 5241. Enter negative amounts using either a negative sign preceding the number eg. -45 or parentheses e.g.
(45).)
Security
Net
Income
Common Stock
$
Options
Bonds
Preferred
Adjusted
Adjustment
Net Income
$
$
Shar
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