In 2022, Oriole Ltd. issued $57,000 of 8% bonds at par, with each $1,000 bond being convertible into 100 common shares. The company had revenues of $76,700 and expenses of $44,600 for 2023, not including interest and tax. (Assume a tax rate of 25%) Throughout 2023, 1,800 common shares were outstanding, and none of the bonds were converted or redeemed. (For simplicity. assume that the convertible bonds' equity element is not recorded.) (a) Calculate income available to common shareholders. Income available to common shareholders $ b) Calculate diluted earnings per share for the year ended December 31, 2023. For simplicity, ignore the requirement to record the bonds' debt and equity components separately. The bonds are assumed to be converted for the entire year. (Round answer to 2 decimal places, e.g. 15.25.) Diluted earnings per share: c) Assume that the 57 bonds were issued on October 1, 2023 (rather than in 2022), and that none have been converted or redeemed. Calculate diluted earnings per share for the year ended December 31, 2023. (Round answer to 2 decimal places, e.g. 15.25.) Diluted earnings per share: d) Assume that 9 of the 57 bonds were converted on July 1, 2023. Calculate diluted earnings per share for the year ended December 31, 2023. (Round answer to 2 decimal places, e.g. 15.25.) Diluted earnings per share:
In 2022, Oriole Ltd. issued $57,000 of 8% bonds at par, with each $1,000 bond being convertible into 100 common shares. The company had revenues of $76,700 and expenses of $44,600 for 2023, not including interest and tax. (Assume a tax rate of 25%) Throughout 2023, 1,800 common shares were outstanding, and none of the bonds were converted or redeemed. (For simplicity. assume that the convertible bonds' equity element is not recorded.) (a) Calculate income available to common shareholders. Income available to common shareholders $ b) Calculate diluted earnings per share for the year ended December 31, 2023. For simplicity, ignore the requirement to record the bonds' debt and equity components separately. The bonds are assumed to be converted for the entire year. (Round answer to 2 decimal places, e.g. 15.25.) Diluted earnings per share: c) Assume that the 57 bonds were issued on October 1, 2023 (rather than in 2022), and that none have been converted or redeemed. Calculate diluted earnings per share for the year ended December 31, 2023. (Round answer to 2 decimal places, e.g. 15.25.) Diluted earnings per share: d) Assume that 9 of the 57 bonds were converted on July 1, 2023. Calculate diluted earnings per share for the year ended December 31, 2023. (Round answer to 2 decimal places, e.g. 15.25.) Diluted earnings per share:
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Not part of a graded assignment. Please solve a - d. Thank you!!
Transcribed Image Text:In 2022, Oriole Ltd. issued $57,000 of 8% bonds at par, with each $1,000 bond being convertible into 100 common shares. The
company had revenues of $76,700 and expenses of $44,600 for 2023, not including interest and tax. (Assume a tax rate of 25%.)
Throughout 2023, 1,800 common shares were outstanding, and none of the bonds were converted or redeemed. (For simplicity,
assume that the convertible bonds' equity element is not recorded.)
(a)
Calculate income available to common shareholders.
Income available to common shareholders
$
b) Calculate diluted earnings per share for the year ended December 31, 2023. For simplicity, ignore the
requirement to record the bonds' debt and equity components separately. The bonds are assumed to be
converted for the entire year. (Round answer to 2 decimal places, e.g. 15.25.)
Diluted earnings per share:
c) Assume that the 57 bonds were issued on October 1, 2023 (rather than in 2022), and that none have
been converted or redeemed. Calculate diluted earnings per share for the year ended December 31,
2023. (Round answer to 2 decimal places, e.g. 15.25.)
Diluted earnings per share:
d) Assume that 9 of the 57 bonds were converted on July 1, 2023. Calculate diluted earnings per share
for the year ended December 31, 2023. (Round answer to 2 decimal places, e.g. 15.25.)
Diluted earnings per share:
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