In 2024, Skysong Enterprises issued, at par, 60 $1,000, 8% bonds, each convertible into 100 shares of common stock. Skysong hadrevenues of $18,800 and expenses other than interest and taxes of $8,000 for 2025. (Assume that the tax rate is 20%.) Throughout2025, 1,800 shares of common stock were outstanding; none of the bonds was converted or redeemed.(a) Compute diluted earnings per share for 2025. (Round answer to 2 decimal places, e.g. 2.55.)Earnings per share $(b) Assume the same facts as those assumed for part (a), except that the 60 bonds were issued on September 1, 2025 (rather than in2024), and none have been converted or redeemed. Compute diluted earnings per share for 2025. (Round answer to 2 decimalplaces, e.g. 2.55.)Earnings per share$(c) Assume the same facts as assumed for part (a), except that 20 of the 60 bonds were actually converted on July 1, 2025. Computediluted earnings per share for 2025. (Round answer to 2 decimal places, e.g. 2.55.)Earnings per share $

Earnings per share (EPS) is a financial ratio that measures the amount of net income that a company…

Answered: n 2024, Skysong Enterprises issued, at…

n 2024, Skysong Enterprises issued, at par, 60 evenues of $18,800 and expenses other than 2025, 1,800 shares of common stock were ou

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

In 2024, Skysong Enterprises issued, at par, 60 $1,000, 8% bonds, each convertible into 100 shares of common stock. Skysong had
revenues of $18,800 and expenses other than interest and taxes of $8,000 for 2025. (Assume that the tax rate is 20%.) Throughout
2025, 1,800 shares of common stock were outstanding; none of the bonds was converted or redeemed.
(a) Compute diluted earnings per share for 2025. (Round answer to 2 decimal places, e.g. 2.55.)
Earnings per share $
(b) Assume the same facts as those assumed for part (a), except that the 60 bonds were issued on September 1, 2025 (rather than in
2024), and none have been converted or redeemed. Compute diluted earnings per share for 2025. (Round answer to 2 decimal
places, e.g. 2.55.)
Earnings per share
$
(c) Assume the same facts as assumed for part (a), except that 20 of the 60 bonds were actually converted on July 1, 2025. Compute
diluted earnings per share for 2025. (Round answer to 2 decimal places, e.g. 2.55.)
Earnings per share $

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