What would the basic and diluted earnings per share for XYZ for 2024 be? 1. On January
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
1. On January 1, 2024, XYZ Company had 200,000 shares of $0.25 par common stock outstanding. On May 1, 2024, XYZ sold 30,000 shares of common stock for $56 per share. XYZ had the following preferred stock and bonds outstanding on January 1, 2024. All securities had been sold at par or face value. Issue Date 5/1/2021 Type of Security 12%, $1,000 bonds, $750,000 1/1/2022 1/1/2023 6% cumulative convertible preferred stock, $100 par, 40,000 shares outstanding 6%, convertible $1,000 bonds, $1,000,000 6/30/2023 10%, convertible $1,000 bonds, $600,000 12/31/2023 8%, cumulative preferred stock, $50 par, 12,500 shares outstanding Conversion Terms None 4 shares common for each share of preferred 15 shares common for each $1,000 bond 30 shares of common for each $1,000 bond None XYZ had stock options outstanding on January 1, 2024, for the purchase of 20,000 shares of common stock for $30 per share. On October 1, 2024, options were granted for the purchase of an additional 40,000 shares at $45 per share. The average market price of the common stock for 2024 was $60 per share. XYZ paid no dividends during 2024. The 2024 net income was $1,026,000. The income tax rate is 30%. 1. On January 1, 2024, XYZ Company had 200,000 shares of $0.25 par common stock outstanding. On May 1, 2024, XYZ sold 30,000 shares of common stock for $56 per share. XYZ had the following preferred stock and bonds outstanding on January 1, 2024. All securities had been sold at par or face value. Issue Date 5/1/2021 Type of Security 12%, $1,000 bonds, $750,000 1/1/2022 1/1/2023 6% cumulative convertible preferred stock, $100 par, 40,000 shares outstanding 6%, convertible $1,000 bonds, $1,000,000 6/30/2023 10%, convertible $1,000 bonds, $600,000 12/31/2023 8%, cumulative preferred stock, $50 par, 12,500 shares outstanding Conversion Terms None 4 shares common for each share of preferred 15 shares common for each $1,000 bond 30 shares of common for each $1,000 bond None XYZ had stock options outstanding on January 1, 2024, for the purchase of 20,000 shares of common stock for $30 per share. On October 1, 2024, options were granted for the purchase of an additional 40,000 shares at $45 per share. The average market price of the common stock for 2024 was $60 per share. XYZ paid no dividends during 2024. The 2024 net income was $1,026,000. The income tax rate is 30%.
Expert Answer:
Answer rating: 100% (QA)
To calculate the basic and diluted earnings per share for XYZ for 2024 we need to consider the changes in the number of common shares outstanding due ... View the full answer
Related Book For
Intermediate Accounting
ISBN: 9781119790976
18th Edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield
Posted Date:
Students also viewed these accounting questions
-
Consider a bond with the following characteristics: Maturity Date Coupon Rate Coupon Payments per Year Redemption Value (% of Par) Required: Suppose you purchase the bond on 10/31/2022. One year...
-
You expect that Bean Enterprises will have earnings per share of $3 for the coming year. Bean plans to retain all of its earnings for the next three years. For the subsequent two years, the firm...
-
Lovell Corporation purchased 200,000 of the 1 million common shares of Abacus Ltd. on October 1, 2012, at $2.50 per share. Near the end of the fourth quarter, Abacus declared and paid dividends on...
-
The models of this chapter emphasize forecasting the level of a series. For many business decisions, fore-casts of change are more important. If were projecting an increase in sales, then we need to...
-
Washington Tennis & Education Foundation, Inc. (WTEF) is a nonprofit organization operating in the District of Columbia that provides athletic and academic programs for children from low-income...
-
One of the examples in this chapter dealt with determining the optimal reorder point for a computer monitor sold by Millennium Computer Corp. Suppose that it costs MCC $0.30 per day in holding costs...
-
a) In the conventional theory of the firm, the principal objective of a business is profit maximisation. Under the differences in consumer tastes and technology drive, price and output of a given...
-
What is output? #include using namespace std; class Line () public: }; Line () { } int main() { cout < < "No Such line"; ,} Line L1, *L2; return 0; No output O L1 *L2 O Compiler error O No Such Line
-
1. Youd like to buy a small ranch when you retire in 37 years. You estimate that in 37 years youll need $9 million to do so. If you can earn 1.0% per month, how much will you need to invest each...
-
5. Selected operating data for two divisions of Ashley Company is given below: NORTH SOUTH Sales 720,000 600,000 Total Assets 360,000 200,000 Fixed Assets 140,000 150,000 Total Liabilities 120,000...
-
What is the Balance Sheet Year? If Ended December 31, 2023 Assets Cash 87,000 Accounts Receivable 1 11,000 Inventory 367,000 Other Current Assets 45,000 Total Current Assets 610,000 Property.
-
You are going to buy an insurance policy on your new puppy. The policy is worth $10,000 and the premium costs $315. This particular breed of puppy has a 98% survival rate. What's the expected value...
-
RST's accountant made the following entry in the accounting records: Work in Process Inventory XXX Raw Materials Inventory XXX Which of the choices is correct with regard to the journal entry?
-
You owe $1,000 at 9 months and another $2,440.07 at 27 months. Your creditor has agreed to let you settle BOTH debts at 15 months and will use a 6% (SA). Using a Focal Point and a Settlement Date at...
-
Perform the indicated operations. In designing a cam for a fire engine pump, the expression is used. Simplify this expression. (3) (3 4 32
-
The books of Conchita Corporation carried the following account balances as of December 31, 2025. The company decided not to pay any dividends in 2025. The board of directors, at their annual meeting...
-
At December 31, 2025, Redmond Company has outstanding three long-term debt issues. The first is a $2,000,000 note payable which matures June 30, 2028. The second is a $6,000,000 bond issue which...
-
Your ultimate goal is to take a trip to Mars on SpaceXs Starship. You estimate these trips will be available in 25 years at a price of $500,000. You have $75,000 available to deposit today....
-
Read the following extract from an article about a business venture of the Bob Jane company. Is prudence still a virtue? The concept of prudence and its use, or non-use, in financial reporting has...
-
Your friend Ninette Nobis was a tourism management student when you were at university together and is now a manager of an upmarket hotel in the Exquisite Hotels chain. Because of the impact of an...
-
Transactions affecting Bradford Ltds accounts receivable for the year ended 30 June are presented below. On 1 July of the previous year, the opening balance of the Allowance for Doubtful Debts...
Study smarter with the SolutionInn App