The following transactions have also occurred at Blossom. Options were granted on July 1, 2024, to purchase 220,000 shares at $14 per share. Although no options were exercised during fiscal year 2025, the average price per common share during fiscal year 2025 was $20 per share. 1. 2. 3. 4₁ 5. 6. Each bond was issued at face value. The 8% convertible bonds will convert into common stock at 50 shares per $1,000 bond. The bonds are exercisable after 5 years and were issued in fiscal year 2024. The preferred stock was issued in 2024. There are no preferred dividends in arrears; however, preferred dividends were not declared in fiscal year 2025. The 1,020,000 shares of common stock were outstanding for the entire 2025 fiscal year. Net income for fiscal year 2025 was $1,490,000, and the average income tax rate is 20%. For the fiscal year ended June 30, 2025, calculate the following for Blossom Pharmaceutical Industries. (Round answers to 2 decimal places, e.g. 2.45.) a. Basic earnings per share. Basic earnings per share $ b. Diluted earnings per share. Diluted earnings per share 1.46 1.17
The following transactions have also occurred at Blossom. Options were granted on July 1, 2024, to purchase 220,000 shares at $14 per share. Although no options were exercised during fiscal year 2025, the average price per common share during fiscal year 2025 was $20 per share. 1. 2. 3. 4₁ 5. 6. Each bond was issued at face value. The 8% convertible bonds will convert into common stock at 50 shares per $1,000 bond. The bonds are exercisable after 5 years and were issued in fiscal year 2024. The preferred stock was issued in 2024. There are no preferred dividends in arrears; however, preferred dividends were not declared in fiscal year 2025. The 1,020,000 shares of common stock were outstanding for the entire 2025 fiscal year. Net income for fiscal year 2025 was $1,490,000, and the average income tax rate is 20%. For the fiscal year ended June 30, 2025, calculate the following for Blossom Pharmaceutical Industries. (Round answers to 2 decimal places, e.g. 2.45.) a. Basic earnings per share. Basic earnings per share $ b. Diluted earnings per share. Diluted earnings per share 1.46 1.17
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
Related questions
Question
Subject: acounting
Transcribed Image Text:The following transactions have also occurred at Blossom.
Options were granted on July 1, 2024, to purchase 220,000 shares at $14 per share. Although no options were exercised
during fiscal year 2025, the average price per common share during fiscal year 2025 was $20 per share.
1.
2.
3.
4.
5.
6.
Each bond was issued at face value. The 8% convertible bonds will convert into common stock at 50 shares per $1,000 bond.
The bonds are exercisable after 5 years and were issued in fiscal year 2024.
The preferred stock was issued in 2024.
There are no preferred dividends in arrears; however, preferred dividends were not declared in fiscal year 2025.
The 1,020,000 shares of common stock were outstanding for the entire 2025 fiscal year.
Net income for fiscal year 2025 was $1,490,000, and the average income tax rate is 20%.
For the fiscal year ended June 30, 2025, calculate the following for Blossom Pharmaceutical Industries. (Round answers to 2 decimal
places, e.g. 2.45.)
a. Basic earnings per share.
Basic earnings per share $
b. Diluted earnings per share.
Diluted earnings per share.
146
117
Transcribed Image Text:Amy Dyken, controller at Blossom Pharmaceutical Industries, a public company, is currently preparing the calculation for basic and
diluted earnings per share and the related disclosure for Blossom's financial statements. Below is selected financial information for the
fiscal year ended June 30, 2025.
Long-term debt
Notes payable, 11%
8% convertible bonds payable
11% bonds payable
Total long-term debt
Blossom Pharmaceutical Industries
Selected Balance Sheet Information
June 30, 2025
Shareholders' equity
Preferred stock, 6% cumulative, $50 par value, 98,000 shares authorized, 24,500 shares issued and outstanding
Common stock, $1 par, 10,200,000 shares authorized, 1,020,000 shares issued and outstanding
Additional paid-in capital
Retained earnings
Total shareholders' equity
$980,000
5,030,000
6,100,000
$12,110,000
$1,225,000.
1,020,000
3,940,000
6,120,000
$12,305,000
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