Archangelo Company provided the following information for the current year Net income is $ 8,112,600 and the company is subject to a 40 tax rate There are 1,020,300 shares of common stock outstanding for the entire year with an average market price of $ 32 per share The company had three potentiall...

a Basic and diluted earnings per share Preferred dividend adjustment 85200 x 650 553800 BEPS 8112600 553800 1020300 741 Antidilution sequencing is use ...

Archangelo Company provided the following information for the current year. Net income is $ 8,112,600 and the

Question:

Archangelo Company provided the following information for the current year. Net income is $ 8,112,600 and the company is subject to a 40% tax rate. There are 1,020,300 shares of outstanding for the entire year with an average market price of $ 32 per share. The company had three potentially dilutive securities outstanding for the full year. There are qualified employee options to acquire 98,000 shares of at an exercise price of $ 20 per share. The stockholders’ equity section of the includes 85,200 shares of convertible preferred stock. The board of directors declared preferred dividends of $ 6.50 per share for the year. Each preferred share is convertible into 1 share of common stock. Finally, the company issued $ 6,500,000 face value, 9% convertible bonds at on January 1. Each $ 1,000 bond is convertible into 80 shares of common stock.
Required
a. Based on the information provided, compute basic and diluted earnings per share for the current year. Include all computations related to the application of antidilution sequencing.
b. Prepare the required income statement disclosures beginning with net income. Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial... Par Value
Par value is the face value of a bond. Par value is important for a bond or fixed-income instrument because it determines its maturity value as well as the dollar value of coupon payments. The market price of a bond may be above or below par,...