The Lily Company, a calendar year entity, reported net income of $300,000 for 2019. At the start of 2019, Lily had 100,000 common shares outstanding, but issued 60,000 additional shares for cash on Sept. 1, 2019. At December 31, 2019, Lily issued a 10% stock dividend. Lily had 30,000 options outstanding for the entire year and each option is convertible into one share of common stock. Each option has an exercise price of $20 per common share. Lily's common stock traded at an average price of $25 during 2019. The tax rate is 20%. Additionally, Lily had outstanding for the entire year of 2019 the following convertible securities: )20,000 shares of $10 par value, 10% non-cumulative preferred stock. Each preferred share is convertible into three shares of common stock. No preferred stock dividends were declared this year. (1) s600,000, 10% convertible bonds issued at par; each $1,000 bond is convertible into 25 common shares. 1. Compute Basic EPS for the Lily Company (rounding to 2 decimal places). Clearly label and show your work.

The Lily Company, a calendar year entity, reported net income of $300,000 for 2019. At the start of 2019, Lily had 100,000 common shares outstanding, but issued 60,000 additional shares for cash on Sept. 1, 2019. At December 31, 2019, Lily issued a 10% stock dividend. Lily had 30,000 options outstanding for the entire year and each option is convertible into one share of common stock. Each option has an exercise price of $20 per common share. Lily's common stock traded at an average price of $25 during 2019. The tax rate is 20%. Additionally, Lily had outstanding for the entire year of 2019 the following convertible securities: )20,000 shares of $10 par value, 10% non-cumulative preferred stock. Each preferred share is convertible into three shares of common stock. No preferred stock dividends were declared this year. (1) s600,000, 10% convertible bonds issued at par; each $1,000 bond is convertible into 25 common shares. 1. Compute Basic EPS for the Lily Company (rounding to 2 decimal places). Clearly label and show your work.

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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