Bridgeman Company, headquartered in San Francisco, reported the following data for the current year. Net income,...

 

Transcribed Image Text:

Bridgeman Company, headquartered in San Francisco, reported the following data for the current year. Net income, $2,442,000. Common shares outstanding at the beginning of the year, 960,000. Nonconvertible cumulative preferred stock, $100 par, $8 dividend per share per year, 120,000 shares outstanding all year. Issued 240,000 shares of common stock on October 1. Convertible cumulative preferred stock, $100 par, $7 dividend per share per year, 60,000 shares outstanding at the beginning of the year. On March 31, 24,000 shares of preferred stock converted to 48,000 common shares. For both preferred stock issues, assume dividends are paid for time held. Note: In the following calculations, enter the earnings per share amounts in dollars and cents, rounded to the nearest penny. a. Compute basic EPS. b. Compute diluted EPS. Net Income Available to Weighted Avg. Common Basic EPS $ Diluted EPS $ Common Stockholders Per Shares Outstanding Share (1,251,000) x 988,500 x $ 0 x 1,251,000 x 840,000 x $ 0 x Bridgeman Company, headquartered in San Francisco, reported the following data for the current year. Net income, $2,442,000. Common shares outstanding at the beginning of the year, 960,000. Nonconvertible cumulative preferred stock, $100 par, $8 dividend per share per year, 120,000 shares outstanding all year. Issued 240,000 shares of common stock on October 1. Convertible cumulative preferred stock, $100 par, $7 dividend per share per year, 60,000 shares outstanding at the beginning of the year. On March 31, 24,000 shares of preferred stock converted to 48,000 common shares. For both preferred stock issues, assume dividends are paid for time held. Note: In the following calculations, enter the earnings per share amounts in dollars and cents, rounded to the nearest penny. a. Compute basic EPS. b. Compute diluted EPS. Net Income Available to Weighted Avg. Common Basic EPS $ Diluted EPS $ Common Stockholders Per Shares Outstanding Share (1,251,000) x 988,500 x $ 0 x 1,251,000 x 840,000 x $ 0 x

Answer rating: 100% (QA)

To compute the basic and diluted earnings per share EPS for Bridgeman Company we can use the followi... View the full answer