Comprehensive EPS Problem # 1 The following is the capital structure and partial liabilities of Waterton Waffles
Question:
Comprehensive EPS Problem #
The following is the capital structure and partial liabilities of Waterton Waffles Watermelon and Worcestershire Co at December :
Current Liabilities:
Notes Payable $
Other various current liabilities
Total Current Liabilities
ongterm Liabilities:
Convertible debentures due April
Total longterm debt
'hareholders' Equity:
$ Cumulative cohvertible preferred shares, nonpar; shares authorized; issued and outstanding $
Common Shares, nonpar; shares authorized; shares issued and outstanding
Contributed Surplus Retained Earnings Total paid in Capital & Retained Earnings $
Total Shareholders' Equity $
ADDITIONAL INFORMATION:
a The convertible debentures were issued at their face value of $ in The debentures are due in and until then are convertible into common stock of Waterton Ws at the rate of shares for each $ debenture.
b The $ cumulative, convertible preferred shares were issued in On July and on October holders of the preferred shares converted and preferred shares, respectively, into common shares. Each preferred share is convertible into shares of common stock.
c On March Waterton Ws issued shares of common stock for land and buildings.
d On April common shares were cancelled.
d Dividends on the preferred shares have been paid quarterly March June September & December through December
e Stock options were grantedwritten to the president of the corporation on January Each of the options permits the holder to purchase one share of common stock for $ per share. The options are exercisable at any time after December within years The average market price of the shares during was $ Waterton Ws uses the "Treasury Share method" for accounting for stock options.
f Net income of Waterton Waffles Watermelon and Worcestershire Co for the year ended December was $ The income tax rate is and rate of return after tax is normal for Waterton Ws
REOUIRED: Prepare all required earnings per share data for in good form. On the following table indicate the fully diluted EPS amount. Show calculations and label them clearly.
tableSharesIncome,EPS
What would be shown on the December Income Statement for EPS?
International Financial Reporting and Analysis
ISBN: 978-1408075012
5th edition
Authors: David Alexander, Anne Britton, Ann Jorissen