Date Share Changes Shares Outstanding January 1 Beglnning balance 210 000 April 1 Issued 27 000 shares July 1 6-for-1 share spllt took place September 1 Purchased 9 000 shares December 31 Issued 15 000 shares luffy Corporation has a net Income of €865 980 and a tax rate of 10%. Its only convertible Instruments re 27 000 outstanding warrants (Issued prior to 2015) that can each be converted to one ordinary nare at an exercise price of €12. The average falr value of Fluffy's share during 2015 Is €20
Date Share Changes Shares Outstanding January 1 Beglnning balance 210 000 April 1 Issued 27 000 shares July 1 6-for-1 share spllt took place September 1 Purchased 9 000 shares December 31 Issued 15 000 shares luffy Corporation has a net Income of €865 980 and a tax rate of 10%. Its only convertible Instruments re 27 000 outstanding warrants (Issued prior to 2015) that can each be converted to one ordinary nare at an exercise price of €12. The average falr value of Fluffy's share during 2015 Is €20
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![Case: Fluffy Corporation (questions 4 - 5)
Fluffy Corporation has changes In Its ordinary shares outstanding for the year 2015, as Illustrated In the
table below.
20
Date
Share Changes
Shares Outstanding
January 1
Beginning balance
210 000
24
April 1
Issued 27 000 shares
July 1
6-for-1 share split took place
September 1
Purchased9 000 shares
December 31
Issued 15 000 shares
Fluffy Corporation has a net Income of €865 980 and a tax rate of 10%. Its only convertible Instruments
are 27 000 outstanding warrants (Isued prior to 2015) that can each be converted to one ordinary
share at an exercise price of €12. The average falr value of Fluffy's share during 2015 Is €20.
Calculate the 2015 diluted EPS for Fluffy Corporation, assuming the company uses the if-converted
and treasury-share method for warrants. Also assume the resulting shares are subject to the share
split on July 1.
Provide the numerator and denominator for your calculation of diluted EPS
[Round the numerator and denominator to the nearest Integer, if applicable. Round diluted EPS to the
nearest cent.]
Numerator = €
Denominator% =
Diluted EPS = €](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F2e45d4ed-0ab6-4636-b18f-4efb728e6168%2Fcb26f040-470f-4bc2-8dea-62568ce12364%2Fy7bxjbh_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Case: Fluffy Corporation (questions 4 - 5)
Fluffy Corporation has changes In Its ordinary shares outstanding for the year 2015, as Illustrated In the
table below.
20
Date
Share Changes
Shares Outstanding
January 1
Beginning balance
210 000
24
April 1
Issued 27 000 shares
July 1
6-for-1 share split took place
September 1
Purchased9 000 shares
December 31
Issued 15 000 shares
Fluffy Corporation has a net Income of €865 980 and a tax rate of 10%. Its only convertible Instruments
are 27 000 outstanding warrants (Isued prior to 2015) that can each be converted to one ordinary
share at an exercise price of €12. The average falr value of Fluffy's share during 2015 Is €20.
Calculate the 2015 diluted EPS for Fluffy Corporation, assuming the company uses the if-converted
and treasury-share method for warrants. Also assume the resulting shares are subject to the share
split on July 1.
Provide the numerator and denominator for your calculation of diluted EPS
[Round the numerator and denominator to the nearest Integer, if applicable. Round diluted EPS to the
nearest cent.]
Numerator = €
Denominator% =
Diluted EPS = €
Expert Solution

This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 4 steps

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