Whitefish, Inc. is a publicly traded company with a complex capital structure. The following shareholders' equity...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Whitefish, Inc. is a publicly traded company with a complex capital structure. The following shareholders' equity portion of the balance and summary income statements relate to Whitefish, Inc. on December 31, 2020. Shareholders' Equity Section Common Stock - $1 par value; 200,000 shares authorized, 150,000 shares issued, 140,000 shares outstanding $150,000 250,000 Convertible $2 preferred stock - $10 par value; 25,000 shares authorized, issued, and outstanding 600,000 Additional paid-in capital - Common Stock Additional paid-in capital - Preferred Stock Retained Earning 375,000 1,245,000 (70,000) Treasury stock, at cost 10,000 common shares Total Shareholders' Equity Section $2,550,000 Summary Income Statement $854,000 Income from Continuing Operations, after tax Discontinued operations, net of tax effect Net Income (34,000) $820,000 In addition, Whitefish has $1,000,000, 5% convertible bonds reported as long-term liability. The 5% bonds are convertible into 25,000 shares of common stock. During 2020, Whitefish paid required dividends on its preferred stock. The preferred shares are convertible into 75,000 shares of common stock. No other stock issues or repurchase of stock for treasury occurred during the year. 2. Add a new worksheet and based on the results of requirement 1, summarize the basic and diluted earnings per share for 2020 that Whitefish must report on the income statement for 2020. Label the worksheet 'FinSt'. 3. On the worksheet 'FinSt' prepare the required note disclosures including the earnings per share reconciliation (see page 1137 in textbook). Whitefish, Inc. is a publicly traded company with a complex capital structure. The following shareholders' equity portion of the balance and summary income statements relate to Whitefish, Inc. on December 31, 2020. Shareholders' Equity Section Common Stock - $1 par value; 200,000 shares authorized, 150,000 shares issued, 140,000 shares outstanding $150,000 250,000 Convertible $2 preferred stock - $10 par value; 25,000 shares authorized, issued, and outstanding 600,000 Additional paid-in capital - Common Stock Additional paid-in capital - Preferred Stock Retained Earning 375,000 1,245,000 (70,000) Treasury stock, at cost 10,000 common shares Total Shareholders' Equity Section $2,550,000 Summary Income Statement $854,000 Income from Continuing Operations, after tax Discontinued operations, net of tax effect Net Income (34,000) $820,000 In addition, Whitefish has $1,000,000, 5% convertible bonds reported as long-term liability. The 5% bonds are convertible into 25,000 shares of common stock. During 2020, Whitefish paid required dividends on its preferred stock. The preferred shares are convertible into 75,000 shares of common stock. No other stock issues or repurchase of stock for treasury occurred during the year. 2. Add a new worksheet and based on the results of requirement 1, summarize the basic and diluted earnings per share for 2020 that Whitefish must report on the income statement for 2020. Label the worksheet 'FinSt'. 3. On the worksheet 'FinSt' prepare the required note disclosures including the earnings per share reconciliation (see page 1137 in textbook).
Expert Answer:
Answer rating: 100% (QA)
a Calculation of basic earnings per share for 2020 including weighted average common shares outstand... View the full answer
Related Book For
Foundations of Financial Management
ISBN: 978-1259024979
10th Canadian edition
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen, Doug Short, Michael Perretta
Posted Date:
Students also viewed these accounting questions
-
The income statement for Whistler Ltd., a publicly traded company following ASPE, is presented here: WHISTLER LTD. Income Statement Year Ended November 30, 2018...
-
The Board of Directors of a publicly traded company says that a proposed amendment to their bylaws is likely to win approval in the upcoming election because a poll of 1505 stock owners indicated...
-
Acquiring Corp (Acq) is a publicly traded company with 500X shares of voting common stock outstanding (FMV = $10 per share) and $500X of accumulated E&Ps. Target Corp (T) has assets with an AB of...
-
Jake, a single taxpayer, has $100,000 of ordinary income, a $10,000 net short-term capital loss, and $7,000 of qualified dividends. What is the result?
-
Baker Machine (see Problem 3) is considering two alternative layouts. Compare the wd scores using rectilinear distance of the following two block plans to determine which alternative layout is...
-
A, B, and C are three aldohexoses. Compounds A and B yield the same optically active alditol when they are reduced with hydrogen and a catalyst; A and B yield different phenylosazones when treated...
-
Which of the following is least likely to be a major focus when undertaking long-run planning for the information systems audit function? a. Identifying the sequence in which material application...
-
Heat conduction in an annulus (Fig. 10B.4), (a) Heat is flowing through an annular wall of inside radius r 0 and outside radius r 1 . The thermal conductivity varies linearly with temperature from k...
-
Kalamarides Enterprises will pay an annual dividend of $ 2 . 0 8 per share on its common stock next year. The firm just paid a dividend of $ 2 . 0 0 per share and adheres to a constant rate of growth...
-
Fantastique Bikes is a company that manufactures bikes in a monopolistically competitive market. The following graph shows Fantastique?s demand curve, marginal revenue curve (MR), marginal cost curve...
-
Using your new knowledge of single application rate overhead allocation vs. activity-based costing: 1. Which types of firms do you think are more likely to use each method? For example, firms with...
-
In response to Microsofts efforts to acquire the firm, the Yahoo! board adopted a change-in-control compensation plan. The plan stated that if a Yahoo! employees job is terminated by Yahoo! without...
-
When do we use sub-flows?
-
Jessica Pothier opened FunFlatables on June 1, 2010. The company rents out moon walks and inflatable slides for parties and corporate events. The company also has obtained the use of an abandoned ice...
-
Comment on the statement normal flow is the best-case scenario.
-
A major department store chain is having a sale on refrigerators. The number of refrigerators sold during this sale at a sample of ten stores was: $\begin{array}{llllllllll}80 & 110 & 0 & 40 & 70 &...
-
Explain the specific perceptual errors you made of EACH of your teammates during the class exercise
-
An item of depreciable machinery was acquired on 1 July 2009 for $120,000 by cash It is expected to have a useful life of 10 years and zero salvage value On 1 July 2012, it was decided to revalue the...
-
You are in need of a car. After much research you have decided to purchase a new 2023 Toyota Camry. The list price for the car at the local dealership is $25,945 including tax, title, and license....
-
Elgin Restaurant Supplies is analyzing the purchase of manufacturing equipment that will cost $20,000. The annual cash inflows are as follows. Year ..............Cash flow 1 ..................$10,000...
-
How would you modify your capital budgeting analysis (NPV methodology) to account for expected inflation?
-
Dividends per Share Calculate the company's dividend paid per share of common stock. What was the dividend payout ratio? Use the following financial data for Brenner Instruments Sales revenue.. Cost...
-
Horizontal Analysis Total assets were \(\$ 1,000,000\) in \(2019, \$ 900,000\) in 2018 , and \(\$ 950,000\) in 2017. What was the percentage change from 2017 to 2018 and from 2018 to 2019? Was the...
-
Common-Size Income Statement A partial common-size income statement for Jag Company for three years is shown below. Did Jag's net income as a percentage of net sales increase, remain the same, or...
Study smarter with the SolutionInn App