Consolidated earnings per share: Consolidated earnings per share can be calculated in a similar manner as earnings per share is calculated in a single corporation. Consolidated earnings per share is calculated using income accredited to the controlling interest and available to parent’s common stock. Basic consolidated EPS is calculated by deducting income to the non-controlling interest and preferred dividends of the parent company if any from consolidated net income, divided by the weighted-average number of the parent’s common shares outstanding during the period. An important point to be considered here is, in the calculation of the parent’s percentage of ownership changes frequently when subsidiary convertible bonds and preferred stock are treated as common stock and subsidiary options and warrants are assumed as had been exercised. In addition, income available to subsidiary common shareholders also changes. The treatment of preferred share holder’s dividends in computing consolidated EPS.

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Answer 1

Question

Chapter 10, Problem 10.18Q

To determine

Introduction:

Consolidated earnings per share: Consolidated earnings per share can be calculated in a similar manner as earnings per share is calculated in a single corporation. Consolidated earnings per share is calculated using income accredited to the controlling interest and available to parent’s common stock. Basic consolidated EPS is calculated by deducting income to the non-controlling interest and preferred dividends of the parent company if any from consolidated net income, divided by the weighted-average number of the parent’s common shares outstanding during the period. An important point to be considered here is, in the calculation of the parent’s percentage of ownership changes frequently when subsidiary convertible bonds and preferred stock are treated as common stock and subsidiary options and warrants are assumed as had been exercised. In addition, income available to subsidiary common shareholders also changes.

The treatment of preferred share holder’s dividends in computing consolidated EPS.

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The Bluebird Company has annual sales of $6,800, total debt of $2,200, total equity of $3,400, and a profit margin of 7.5 percent. What is the return on assets? a. 7.25 percent b. 8.96 percent c. 10.18 percent d. 9.11 percent e. 11.45 percent

Can you demonstrate the accurate method for solving this financial accounting question?

Answer 2

Question

Chapter 10, Problem 10.18Q

To determine

Introduction:

Consolidated earnings per share: Consolidated earnings per share can be calculated in a similar manner as earnings per share is calculated in a single corporation. Consolidated earnings per share is calculated using income accredited to the controlling interest and available to parent’s common stock. Basic consolidated EPS is calculated by deducting income to the non-controlling interest and preferred dividends of the parent company if any from consolidated net income, divided by the weighted-average number of the parent’s common shares outstanding during the period. An important point to be considered here is, in the calculation of the parent’s percentage of ownership changes frequently when subsidiary convertible bonds and preferred stock are treated as common stock and subsidiary options and warrants are assumed as had been exercised. In addition, income available to subsidiary common shareholders also changes.

The treatment of preferred share holder’s dividends in computing consolidated EPS.

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Answer 3

Question

Chapter 10, Problem 10.18Q

To determine

Introduction:

Consolidated earnings per share: Consolidated earnings per share can be calculated in a similar manner as earnings per share is calculated in a single corporation. Consolidated earnings per share is calculated using income accredited to the controlling interest and available to parent’s common stock. Basic consolidated EPS is calculated by deducting income to the non-controlling interest and preferred dividends of the parent company if any from consolidated net income, divided by the weighted-average number of the parent’s common shares outstanding during the period. An important point to be considered here is, in the calculation of the parent’s percentage of ownership changes frequently when subsidiary convertible bonds and preferred stock are treated as common stock and subsidiary options and warrants are assumed as had been exercised. In addition, income available to subsidiary common shareholders also changes.

The treatment of preferred share holder’s dividends in computing consolidated EPS.

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Answer 4

Question

Chapter 10, Problem 10.18Q

To determine

Introduction:

Consolidated earnings per share: Consolidated earnings per share can be calculated in a similar manner as earnings per share is calculated in a single corporation. Consolidated earnings per share is calculated using income accredited to the controlling interest and available to parent’s common stock. Basic consolidated EPS is calculated by deducting income to the non-controlling interest and preferred dividends of the parent company if any from consolidated net income, divided by the weighted-average number of the parent’s common shares outstanding during the period. An important point to be considered here is, in the calculation of the parent’s percentage of ownership changes frequently when subsidiary convertible bonds and preferred stock are treated as common stock and subsidiary options and warrants are assumed as had been exercised. In addition, income available to subsidiary common shareholders also changes.

The treatment of preferred share holder’s dividends in computing consolidated EPS.

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Answer 5

Chapter 10, Problem 10.18Q

To determine

Introduction:

Consolidated earnings per share: Consolidated earnings per share can be calculated in a similar manner as earnings per share is calculated in a single corporation. Consolidated earnings per share is calculated using income accredited to the controlling interest and available to parent’s common stock. Basic consolidated EPS is calculated by deducting income to the non-controlling interest and preferred dividends of the parent company if any from consolidated net income, divided by the weighted-average number of the parent’s common shares outstanding during the period. An important point to be considered here is, in the calculation of the parent’s percentage of ownership changes frequently when subsidiary convertible bonds and preferred stock are treated as common stock and subsidiary options and warrants are assumed as had been exercised. In addition, income available to subsidiary common shareholders also changes.

The treatment of preferred share holder’s dividends in computing consolidated EPS.

Answer 6

Chapter 10, Problem 10.18Q

To determine

Introduction:

Consolidated earnings per share: Consolidated earnings per share can be calculated in a similar manner as earnings per share is calculated in a single corporation. Consolidated earnings per share is calculated using income accredited to the controlling interest and available to parent’s common stock. Basic consolidated EPS is calculated by deducting income to the non-controlling interest and preferred dividends of the parent company if any from consolidated net income, divided by the weighted-average number of the parent’s common shares outstanding during the period. An important point to be considered here is, in the calculation of the parent’s percentage of ownership changes frequently when subsidiary convertible bonds and preferred stock are treated as common stock and subsidiary options and warrants are assumed as had been exercised. In addition, income available to subsidiary common shareholders also changes.

The treatment of preferred share holder’s dividends in computing consolidated EPS.

Answer 7

Chapter 10, Problem 10.18Q

To determine

Introduction:

Consolidated earnings per share: Consolidated earnings per share can be calculated in a similar manner as earnings per share is calculated in a single corporation. Consolidated earnings per share is calculated using income accredited to the controlling interest and available to parent’s common stock. Basic consolidated EPS is calculated by deducting income to the non-controlling interest and preferred dividends of the parent company if any from consolidated net income, divided by the weighted-average number of the parent’s common shares outstanding during the period. An important point to be considered here is, in the calculation of the parent’s percentage of ownership changes frequently when subsidiary convertible bonds and preferred stock are treated as common stock and subsidiary options and warrants are assumed as had been exercised. In addition, income available to subsidiary common shareholders also changes.

The treatment of preferred share holder’s dividends in computing consolidated EPS.

Answer 8

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Answer 9

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Answer 10

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Answer 11

Ch. 10 - Prob. 10.1Q Ch. 10 - Why are dividend payments to noncontrolling...Ch. 10 - Prob. 10.3Q Ch. 10 - Why are changes in inventory balances not shown in...Ch. 10 - Prob. 10.5Q Ch. 10 - How is an increase in inventory included in the...Ch. 10 - What portion of the sales of an acquired company...Ch. 10 - Prob. 10.8Q Ch. 10 - Prob. 10.9Q Ch. 10 - Prob. 10.10Q

Solution Summary: The author explains how consolidated earnings per share is calculated using income accredited to the controlling interest and available to parent’s common stock.

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