Information from the financial statements of Ames Fabricators, Incorporated included the following: Common shares Convertible preferred shares (convertible into 44,000 shares of common) 8% convertible bonds (convertible into 30,000 shares of common) December 31 2024 2023 100,000 15,600 100,000 15,600 $ 1,000,000 $ 1,000,000 Ames's net income for the year ended December 31, 2024, is $560,000. The income tax rate is 25%. Ames paid dividends of $5 per share on its preferred stock during 2024. Required: Compute basic and diluted earnings per share for the year ended December 31, 2024. Note: Do not round intermediate calculations. Enter your answers in thousands (i.e., 10,000 should be entered as 10).
Information from the financial statements of Ames Fabricators, Incorporated included the following: Common shares Convertible preferred shares (convertible into 44,000 shares of common) 8% convertible bonds (convertible into 30,000 shares of common) December 31 2024 2023 100,000 15,600 100,000 15,600 $ 1,000,000 $ 1,000,000 Ames's net income for the year ended December 31, 2024, is $560,000. The income tax rate is 25%. Ames paid dividends of $5 per share on its preferred stock during 2024. Required: Compute basic and diluted earnings per share for the year ended December 31, 2024. Note: Do not round intermediate calculations. Enter your answers in thousands (i.e., 10,000 should be entered as 10).
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Information from the financial statements of Ames Fabricators, Incorporated included the following:
Common shares
Convertible preferred shares (convertible into 44,000 shares of common)
8% convertible bonds (convertible into 30,000 shares of common)
Basic
Diluted
Numerator
$ 484,000 X
$ 484,000
Ames's net income for the year ended December 31, 2024, is $560,000. The income tax rate is 25%. Ames paid dividends of $5 per
share on its preferred stock during 2024.
Answer is complete but not entirely correct.
Earnings per Share
3.36
2.78
Required:
Compute basic and diluted earnings per share for the year ended December 31, 2024.
Note: Do not round intermediate calculations. Enter your answers in thousands (i.e., 10,000 should be entered as 10).
Denominator
144,000 * =
174,000
December 31
S
2024
100,000
15,600
$ 1,000,000
69 69
2023
100,000
15,600
$ 1,000,000
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