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On June 1, 2023, Concord Company and Marigold Company merged to form Swifty Inc. A total of 870,000 shares were issued to complete the merger. The new corporation reports on a calendar-year basis. On April 1, 2025, the company issued an additional 577,000 shares of stock for cash. All 1,447,000 shares were outstanding on December 31, 2025. Swifty Inc. also issued $600,000 of 20-year, 9% convertible bonds at par on July 1, 2025. Each $1,000 bond converts to 40 shares of common at any interest date. None of the bonds have been converted to date. Swifty Inc. is preparing its annual report for the fiscal year ending December 31, 2025. The annual report will show earnings per share figures based upon a reported after-tax net income of $1,560,000. (The tax rate is 20%.) Determine the following for 2025. a. The number of shares to be used for calculating: (Round answers to O decimal places, e.g. 2,500.) 1. Basic earnings per share 2. Diluted earnings per share shares shares b. The earnings figures to be used for calculating: (Round answers to 0 decimal places, e.g. 2,500.) 1. Basic earnings per share $ 2. Diluted earnings per share $

On June 1, 2023, Concord Company and Marigold Company merged to form Swifty Inc. A total of 870,000 shares were issued to complete the merger. The new corporation reports on a calendar-year basis. On April 1, 2025, the company issued an additional 577,000 shares of stock for cash. All 1,447,000 shares were outstanding on December 31, 2025. Swifty Inc. also issued $600,000 of 20-year, 9% convertible bonds at par on July 1, 2025. Each $1,000 bond converts to 40 shares of common at any interest date. None of the bonds have been converted to date. Swifty Inc. is preparing its annual report for the fiscal year ending December 31, 2025. The annual report will show earnings per share figures based upon a reported after-tax net income of $1,560,000. (The tax rate is 20%.) Determine the following for 2025. a. The number of shares to be used for calculating: (Round answers to O decimal places, e.g. 2,500.) 1. Basic earnings per share 2. Diluted earnings per share shares shares b. The earnings figures to be used for calculating: (Round answers to 0 decimal places, e.g. 2,500.) 1. Basic earnings per share $ 2. Diluted earnings per share $

FINANCIAL ACCOUNTING
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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On June 1, 2023, Concord Company and Marigold Company merged to form Swifty Inc. A total of 870,000 shares were issued to complete the merger. The new corporation reports on a calendar-year basis. On April 1, 2025, the company issued an additional 577,000 shares of stock for cash. All 1,447,000 shares were outstanding on December 31, 2025. Swifty Inc. also issued $600,000 of 20-year, 9% convertible bonds at par on July 1, 2025. Each $1,000 bond converts to 40 shares of common at any interest date. None of the bonds have been converted to date. Swifty Inc. is preparing its annual report for the fiscal year ending December 31, 2025. The annual report will show earnings per share figures based upon a reported after-tax net income of $1,560,000. (The tax rate is 20%.) Determine the following for 2025. a. The number of shares to be used for calculating: (Round answers to O decimal places, e.g. 2,500.) 1. Basic earnings per share 2. Diluted earnings per share shares shares b. The earnings figures to be used for calculating: (Round answers to 0 decimal places, e.g. 2,500.) 1. Basic earnings per share $ 2. Diluted earnings per share $
Transcribed Image Text:On June 1, 2023, Concord Company and Marigold Company merged to form Swifty Inc. A total of 870,000 shares were issued to complete the merger. The new corporation reports on a calendar-year basis. On April 1, 2025, the company issued an additional 577,000 shares of stock for cash. All 1,447,000 shares were outstanding on December 31, 2025. Swifty Inc. also issued $600,000 of 20-year, 9% convertible bonds at par on July 1, 2025. Each $1,000 bond converts to 40 shares of common at any interest date. None of the bonds have been converted to date. Swifty Inc. is preparing its annual report for the fiscal year ending December 31, 2025. The annual report will show earnings per share figures based upon a reported after-tax net income of $1,560,000. (The tax rate is 20%.) Determine the following for 2025. a. The number of shares to be used for calculating: (Round answers to O decimal places, e.g. 2,500.) 1. Basic earnings per share 2. Diluted earnings per share shares shares b. The earnings figures to be used for calculating: (Round answers to 0 decimal places, e.g. 2,500.) 1. Basic earnings per share $ 2. Diluted earnings per share $
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