Sunland Corporation earned net income of $340,000 in 2023 and had 100,000 common shares outstanding throughout the year. Alsooutstanding all year was $800,000 of 10% bonds that are convertible into 10,000 common shares. Sunland's tax rate is 30%.Calculate Sunland's 2023 diluted earnings per share. For simplicity, ignore the IFR$ requirement to record the debt and equitycomponents of the bonds separately. (Round answer to 2 decimal places, e.g. 15.25.)Diluted earnings per share$

Earnings per share is the per share money earned by the common shareholders of the entity. It is…

Answered: Sunland Corporation earned net income…

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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Nichols Corporation has the following convertible bonds. A $100,000 convertible bond was issued at par on January 1, 2021, at 4%. The bond is convertible into 30,000 shares of common stock. Additionally, there was a convertible bond that was purchased on November 1, 2021, at par, for $200,000 with an interest rate of 6%, this bond is convertible into 20,000 shares of common stock. Both bonds pay interest annually. Nichols Corporation has total revenue of 800,000 and expenses of 400,000, which does not include interest expense or taxes. The tax rate is 40%. Additionally, the organization currently has 300,000 shares of common stock outstanding for the entire year. No dividends were paid in 2021. A. Calculate Earnings per share. B. Calculate Dilutive Earnings per share using the if converted method.
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Flint Company had bonds outstanding with a maturity value of $272,000. On April 30, 2025, when these bonds had an unamortized discount of $10,000, they were called in at 105. To pay for these bonds, Flint had issued other bonds a month earlier bearing a lower interest rate. The newly issued bonds had a life of 10 years. The new bonds were issued at 103 (face value $272,000). Ignoring interest, compute the gain or loss. Loss ✓on redemption $ Ignoring interest, prepare the two entries to record this refunding transaction. (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries.) Account Titles and Explanation Bonds Payable Loss on Redemption of Bonds Discount on Bonds Payable Cash (To record redemption of bonds payable) Cash Premium on Bonds Payable 23600 Bonds Payable Debit 272000 23600 Credit 10000…
Chunky Cheese Pizza has $61.9 million in bonds payable. The bond indenture states that the debt to equity ratio cannot exceed 3.22. Chunky’s total assets are $201.9 million, and its liabilities other than the bonds payable are $91.9 million. The company is considering some additional financing through leasing. 1. Calculate total stockholders’ equity using the balance sheet equation. (Enter your answers in millions. (i.e., $5,500,000 should be entered as 5.5).) Stockholders’ Equity =
Looking for answer. Please include all calculations for my reference. Thanks!
The table below shows a partial view of Webster Corporation's balancesheet. Webster CorporationBalance Sheet (partial)At December 31, 2021 Long-term debt Notes payable 10% $2,000,00010% convertible bonds payable 2,500,00012% convertible bonds payable 3,000,000Total long-term debt $7,500,000 Stockholders' equity 6% cumulative, convertiblepreferred stock, $100 par, 50,000shares outstanding. 5,000,000 Common stock, $1 par, 600,000shares outstanding. 600,000Additional paid-in capital 2,500,000 Retained earnings 8,500,000Total stockholders' equity $16,600,000 Notes and Assumptions December 31, 20211. Options were granted in December 2020 to purchase 25,000 shares of common stock at $25 per share. The average market price of common stock during 2021 was $35 per share. All options are still outstanding atthe end of 2021 2. Both the 10 percent and 12 percent convertible bonds were issued in2020 at face value. Each convertible bond is convertible into 50 shares of common stock.…
MV Corporation has debt with market value of $97 million, common equity with a book value of $105 million, and preferred stock worth $23 million outstanding. Its common equity trades at $46 per share, and the firm has 6.1 million shares outstanding. What weights should MV Corporation use in its WACC? The debt weight for the WACC calculation is %. (Round to two decimal places.)
sarasota corporation has 9% convertible bonds outstanding. it recorded interest expense (net of income taxes) Oven $6,300 on these bonds during the year. The bonds are convertible into 2500 shares of common stock. compute the impact of these convertible bonds on Sarasota diluted earnings per share.
On March 1, 2024, Baddour, Incorporated, issued 10% bonds, dated January 1, with a face amount of $160 million. The bonds were priced at $142.00 million (plus accrued interest) to yield 12%. The price if issued on January 1 would have been $139.25 million. Interest is paid semiannually on June 30 and December 31. Baddour’s fiscal year ends September 30. Required: 1. to 3. What would be the amount(s) related to the bonds Baddour would report in its balance sheet, income statement and statement of cash flows for the year ended September 30, 2024?

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