the net income for the year ended December 31, 20x3 was $5,200,000the tax rate is 28%the following common stock transactions occurred during the year:March 1, 20x3 – Issued 300,000 sharesJuly 1, 20x3 – Repurchased and cancelled 140,000 sharesNovember 1, 20x3 – Issued 450,000 sharesHan declared total dividends of $800,000 in 20x3Required –a)Calculate the basic and diluted EPS for the year ended December 31, 20x3.b)Calculate the weighted average number of shares for purposes of calculatingBasic EPS if there was a 2:1 stock split on August 31, 20x3. Selected account balances of the Han Corporation as at December 31, 20x3 are asfollows:Convertible bonds, 5%$31,045,617Preferred Shares, Series A, $4, noncumulative, 60,000 shares issuedand outstanding, each preferred share is convertible into 3 common6,000,000sharesPreferred Shares, Series B, $5, cumulative, 35,000 shares issued and3,500,000outstandingCommon shares, 3,000,000 shares issued and outstanding42,000,000Additional Information –The convertible bonds were issued on December 31, 20x0 and mature onDecember 31, 20x20, The face value of the bonds is $30,000,000. The bonds wereissued to yield 4.7%. The bonds pay interest on June 30 and December 31 of eachyear. Each $1,000 bond is convertible into 20 common shares.In 20x3, Han purchased the shares of another company. As part of the agreement,Han agreed to issue an additional 80,000 shares on February 15, 20x4 if the netincome of the other company for the year ended December 31, 20x3 was inexcess of $1,000,000. The net income of the other company at December 31,20x3 was $1,200,000.Han has three stock option plans outstanding at December 31, 20x3:Series X: 20,000 options at an exercise price of $18Series Y: 15,000 options at an exercise price of $24Series Z: 45,000 options at an exercise price of $15the average stock price for the year was $21.

Earnings per share can be defined as the total revenue generated by shareholders per share, after…

the net income for the year ended December 31, 20x3 was $5,200,000 the tax rate is 28% the following common stock transactions occurred during the year: March 1, 20x3 - Issued 300,000 shares July 1, 20x3 – Repurchased and cancelled 140,000 shares November 1, 20x3 - Issued 450,000 shares Han declared total dividends of $800,000 in 20x3 Required- a) Calculate the basic and diluted EPS for the year ended December 31, 20x3. b) Calculate the weighted average number of shares for purposes of calculating Basic EPS if there was a 2:1 stock split on August 31, 20x3.

the net income for the year ended December 31, 20x3 was $5,200,000 the tax rate is 28% the following common stock transactions occurred during the year: March 1, 20x3 - Issued 300,000 shares July 1, 20x3 – Repurchased and cancelled 140,000 shares November 1, 20x3 - Issued 450,000 shares Han declared total dividends of $800,000 in 20x3 Required- a) Calculate the basic and diluted EPS for the year ended December 31, 20x3. b) Calculate the weighted average number of shares for purposes of calculating Basic EPS if there was a 2:1 stock split on August 31, 20x3.

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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Five Measures of Solvency or Profitability The balance sheet for Garcon Inc. at the end of the current fiscal year indicated the following: Bonds payable, 8% $900,000 Preferred $5 stock, $100 par $228,000 Common stock, $8 par $319,200.00 Income before income tax was $201,600, and income taxes were $30,600 for the current year. Cash dividends paid on common stock during the current year totaled $33,516. The common stock was selling for $28 per share at the end of the year. Determine each of the following. Round answers to one decimal place, except for dollar amounts which should be rounded to the nearest whole cent. Use the rounded answers for subsequent requirements, if required. a. Times interest earned ratio times b. Earnings per share on common stock $ c. Price-earnings ratio d. Dividends per share of common stock $ e. Dividend yield
please answer part d,e
2
Balance sheet and income statement data indicate the following: Bonds payable, 6% (due in 15 years) $1,200,000 Preferred 8% stock, $100 par (no change during the year) 200,000 Common stock, $50 par (no change during the year) 1,000,000 Income before income tax for year 320,000 Income tax for year 80,000 Common dividends paid 60,000 Preferred dividends paid 16,000 Based on the data presented above, what is the times interest earned ratio (round to two decimal places)? a. 5.44 b. 4.33 c. 5.00 d. 4.00
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Five Measures of Solvency or Profitability The balance sheet for Garcon Inc. at the end of the current fiscal year indicated the following: Bonds payable, 6% $1,500,000 Preferred $10 stock, $100 par $88,000 Common stock, $14 par $954,800.00 Income before income tax was $171,000, and income taxes were $25,800 for the current year. Cash dividends paid on common stock during the current year totaled $16,368. The common stock was selling for $16 per share at the end of the year. Determine each of the following. Round answers to one decimal place, except for dollar amounts which should be rounded to the nearest whole cent. Use the rounded answers for subsequent requirements, if required. a. Times interest earned ratio times b. Earnings per share on common stock c. Price-earnings ratio d. Dividends per share of common stock 2$ е. Dividend yield %
Part A - A corporation reacquires 60,000 shares of its own $10 par common stock for $3,000,000, recording it at cost. What effect does this transaction have on revenue or expense of the period? What effect does it have on stockholders' equity?
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