Freewheelers, Inc. has four potentially dilutive securities. Net income for the year is $5,600,000 and the...

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Freewheelers, Inc. has four potentially dilutive securities. Net income for the year is $5,600,000 and the weighted average common shares outstanding is 1,000,000 shares. Freewheelers did not have any discontinued operations. Computation of the antidilution sequencing recorded the following: Security Convertible Preferred Stock Stock Warrants Stock Options Convertible Bonds Increase in Income $50,000 $0 $0 $200,000 Increase in Common Shares 20,000 40,000 10,000 100,000 Compute basic EPS. Determine the order of entry into the EPS computation. Compute final diluted EPS and show all computations. Freewheelers, Inc. has four potentially dilutive securities. Net income for the year is $5,600,000 and the weighted average common shares outstanding is 1,000,000 shares. Freewheelers did not have any discontinued operations. Computation of the antidilution sequencing recorded the following: Security Convertible Preferred Stock Stock Warrants Stock Options Convertible Bonds Increase in Income $50,000 $0 $0 $200,000 Increase in Common Shares 20,000 40,000 10,000 100,000 Compute basic EPS. Determine the order of entry into the EPS computation. Compute final diluted EPS and show all computations.

Answer rating: 100% (QA)

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