a) Calculate the diluted EPS for year ended 31 December 2021. Answer to one decimal place Wyndhams issued £2m 8% convertible preference shares on 1 January 2021, convertible between January 2024 and January 2025 at a rate of 1 ordinary share per £5 of preference shares. b) Combine the information on the convertible loan stock and the convertible preference shares to calculate the diluted EPS for year ended 31 December 2021. Answer to one decimal place
Q: If Baldwin issued 1000 shares of common stock at last year's end price $46.98 , the effect on the…
A: Common stock — Common stock reffers to equity share of the Company. it represents the Ownership in…
Q: If a company incurred a significant repairs and maintenance expense for a plant equipment ( used in…
A: Repairs and Maintenance Expense: The cost that is paid to guarantee that an asset continues to…
Q: Compute for the current liabilities for 2019
A: Computation of actual accounts payable Actual Accounts Payable = Net of Accounts Payable + Debit…
Q: Use the following time value of money tables for Questions 1-4. Round answers to the nearest dollar.…
A: Solution: Amount deposited to saving account = $3,000 Interest rate = 6% Period = 3 Years
Q: DeKay Dental Supplies issued $10,000 of 20-year bonds on January 1, 2021. The bonds pay interest…
A: The bonds payable are the financial instruments for the business which are issued to raise money…
Q: List 2 cash management practices that banks and retail companies sometimes implement to prevent cash…
A: Cash larceny is theft of cash after recording such cash in books of accounts. Employees involves in…
Q: Pitino acquired 90 percent of Brey's outstanding shares on January 1, 2019, in exchange for $342,000…
A: Consolidated worksheet refers to the measure that is used for preparing the consolidated financial…
Q: 1. On September 30, the business ran payroll for their employee, Eddie. Crankshaft customs matches…
A: Given in the question: Total Gross Earnings = 9,000 FICA = 500 Net Earnings = 8,500 It has been…
Q: hank you for helping out with the accounting equation, but may you fill in every blank please in…
A: Solution: As per basic accounting equation: Total Assets = Liabilities + Stockholder's equity…
Q: A motor vehicle, which was purchased on 1 June 2018 for £16,000, is being depreciated using the…
A: Depreciation is the reduction in the value of an asset over a period of time due to wear and tear.…
Q: A residence has a market value of $250,000. The municipality's tax policy is set at 80%. Real estate…
A: The municipal taxes are the taxes that need to be paid by the owner of the property on the assessed…
Q: Drifblim Fine Furniture Inq Drifblim Fine Furniture Inc manufactures house decors. Brass sculptures…
A: Standard costing is one of the type of costing under which for every type of costs, standards are…
Q: a. Calculate the depreciation expense for year 1 b. Calculate the…
A: Depreciation :— Depreciation means Gradual Decrease in the Value of Assets due to Normal Wear and…
Q: Evan Roberts owns a business, Shore Sports, that rents canoes and kayaks. The adjusted trial balance…
A: The net assets of the business are represented by the owner's capital account. It is the sum of…
Q: Estimated inventory (units), July 1 Desired inventory (units), July 31 Expected sales volume…
A: Given : Estimated inventory (units) July 1 = 8500 desired inventory (units) July 31 = 10500 Expected…
Q: Jasmine Traders is a home and nursery centre located in Johannesburg. Jasmine Traders is having…
A: A client issues a debit note to the supplier in case he wants a refund, there may be various reasons…
Q: calculate return on assest for this statement
A: Introduction:- Return on asset ratio indicates how efficiently a company can manage its assets to…
Q: SECTION B: ANSWER ALL PARTS OF THE QUESTION QUESTION B1 Noodle V Ltd start business at the 1st of…
A: Cash Flow Statement :— It is one of the financial statement that shows change in cash and cash…
Q: Lopez Plastics Co. (LPC) issued callable bonds on January 1, 2021. LPC's accountant has projected…
A: Given Information: Cash Interest: $7,000 Outstanding balance at the beginning of the year: $207,020…
Q: Which of the following statements is/are correct criteria of the good tax? a. Good taxation should…
A: Fairness, sufficiency, simplicity, transparency, and administrative convenience are the five…
Q: A company's income statement shows net income of $22,000. Service Revenue is reported to be…
A: The ratio analysis helps to analyse the financial statements of the business on the basis of various…
Q: Comment on the movements in the ratios over two years and adequacy of the level of gearing and…
A: Financial ratios refers to the ratios which determine the line items of the financial items of the…
Q: Pacifico Company, a U.S.-based importer of beer and wine, purchased 1,100 cases of Oktoberfest-style…
A: Foreign exchange contracts - Foreign exchange contracts, also known as over-the-counter contracts,…
Q: . LMN Ltd has the following data relating to its assembly plant for the year to 31 March 2022:…
A: Overhead cost per direct labour hour means total overhead cost incurred divided by total direct…
Q: Your friend started their own company a few years ago. During covid they experienced a lot of…
A: In addition to the regular income or salaries of an employees, they may also get a variety of…
Q: In 2019, DJ Builders Construction agreed to construct an apartment building at a price of…
A: Revenue :— Revenue is the total amount of income generated by the sale of goods or services related…
Q: Q3: Al-Khour group owns two subsidiaries North and South. North produces and sells Woods; the cost…
A: Transfer pricing is one of the technique or methodology being used for calculating prices at which…
Q: Sandhill Company reported net income of $91,300. The partnership agreement provides for salaries of…
A: Golden Rules of Accounting : Account Debit Credit Personal Accounts the receiver the giver…
Q: Sunland Rental Corporation had the following balances in its shareholders' equity accounts at…
A: Golden Rules of Accounting : Account Debit Credit Personal Accounts the receiver the giver…
Q: For February, sales revenue is $595,000, sales commissions are 6% of sales, the sales manager's…
A: Introduction: Selling expenses are the costs of distributing, advertising, and selling a product or…
Q: With the use of three different examples, explain why cash and profit are not the same thing.
A: Cash is the real account in accounting terms as it is current asset and profit is…
Q: For the government wide. I need help with this only**** Previously unrestricted cash of $1,350,000…
A: Financial statements are the statements which are prepared by the government so that just like the…
Q: elow: elling price per unit ariable cost per unit ixed cost per unit £ 90 40 22 ixed costs are based…
A: Total cost = variable costs + fixed costs = (5000 units * £40) + (5000 units * £22) = £200,000 +…
Q: Required: Using the information above, prepare: i. A schedule of collections received from…
A:
Q: An internal auditor is examining the effectiveness of procedures management established to protect…
A: "Independent examination of financial information of any company, whether profit-oriented or not,…
Q: Question: RJ Limited manufactures one standard product and operates a system of variance accounting…
A: Budgeted income statement- Variable cost per unit =30+25+75+45=175 Marginal costing - Budgeted sales…
Q: Refer to the following selected financial information from Gomez Electronics. Compute the compa…
A: Return on total asset is percentage of earning on average assets. Average assets means average of…
Q: Each morning, Joel Stenback stocks the drink case at Joel's Beach Hut in Myrtle Beach, South…
A: Contribution Margin = Contribution margin, or dollar contribution per unit, is the selling price per…
Q: The following data relate to direct labor costs for the current period: 7,200 hours at $11.20 6,300…
A: Direct labor time variance is used to measure the comparison of actual time taken than the standard…
Q: On 1 January 20X1, Dynamic entered into a three year lease for a lorry. Lease payments are $10,000…
A: Cash inflows for first two years = $10000 Cash inflow for third year = $15000 Discount rate = 5%…
Q: Drifblim Fine Furniture Inc Drifblim Fine Furniture Inc manufactures house decors. Brass sculptures…
A: Standard costing is one of the important tool in costing, which helps in estimating standards or…
Q: Bonita Company's record of transactions concerning part X for the month of April was as follows.…
A: Perpetual inventory is one the techniques of inventory management. It is the method under which the…
Q: 14) An employer has computed the following amounts for its employee Mary during a week in January:…
A: Given in the question: Gross Wages $500.00 FNPF $80.00 LICI $50.00 PAYE…
Q: A business operated at 100% of capacity during its first month, with the following results: Sales…
A: Contribution Margin: To get the contribution margin, take the selling price per unit and subtract…
Q: During its first year of operations, LEBANON COMPANY entered into the following transactions…
A: Equity Capital - Share capital and equity finance are other names for equity capital. It is referred…
Q: As a result of remodeling services it performed on the site, La Mesa Construction, Inc. files a…
A: Claim refers to the term in which a creditor ensures to receive the payment from a debtor in…
Q: Auditors performing audits under the Single Audit Act issue an opinion on whether the Schedule of…
A: The term "auditing" normally refers to an objective review and evaluation of a company's financial…
Q: 0 ences exchange for its common stock to launch the business. On December 31, the company's records…
A: Income Statement :— Income Statement is the First stage of the Financial Statement of the Company…
Q: Rafi works at TBG Cinema. Sells the tickets and also ushers customers into the cinema halls. The…
A: The process that helps in assuring that the organization is operating efficiently and reporting the…
Q: 5. true? Which of the following statements concerning the income statement is not It can be called…
A: Income Statement - Income Statement is the statement that includes income earned and expense…
At 31 December 2021 Wyndhams calculated its basic earnings per share as 30 pence per share, based on earnings of £900,000 and 3 million £1 ordinary shares. It has a tax rate of 25%. In addition to the ordinary shares, Wyndham has £3m of 4% convertible loan stock. This is convertible any time from 1 January 2021 – 31 December 2022 at a rate of 1 ordinary share for each £5 of loan stock. None had been converted by the year end.
a) Calculate the diluted EPS for year ended 31 December 2021. Answer to one decimal place
Wyndhams issued £2m 8% convertible
b) Combine the information on the convertible loan stock and the convertible preference shares to calculate the diluted EPS for year ended 31 December 2021. Answer to one decimal place
Step by step
Solved in 3 steps
- Percy Company has 15,000 shares of common stock outstanding during all of 2019. It also has 2 convertible securities outstanding at the end of 2019. These are: 1. Convertible preferred stock: 1,000 shares of 9%, 100 par, preferred stock were issued in 2015 for 140 per share. Each share of preferred stock is convertible into 3.5 shares of common stock. The current dividends have been paid. To date, no preferred stock has been converted. 2. Convertible bonds: Bonds with a face value of 100,000 and an interest rate of 10% were issued at par on July 1, 2019. Each 1,000 bond is convertible into 35 shares of common stock. To date, no bonds have been converted. Percy earned net income of 54,000 during 2019. Its income tax rate is 30%. Required: Compute the 2019 diluted earnings per share. What earnings per share amount(s) would Percy report on its 2019 income statement?Waseca Company had 5 convertible securities outstanding during all of 2019. It paid the appropriate interest (and amortized any related premium or discount using the straight line method) and dividends on each security during 2019. Each of the convertible securities is described in the following table: Additional data: Net income for 2019 totaled 119,460. The weighted average number of common shares outstanding during 2019 was 40,000 shares. No share options or warrants arc outstanding. The effective corporate income tax rate is 30%. Required: 1. Prepare a schedule that lists the impact of the assumed conversion of each convertible security on diluted earnings per share. 2. Prepare a ranking of the order in which each of the convertible securities should be included in diluted earnings per share. 3. Compute basic earnings per share. 4. Compute diluted earnings per share. 5. Indicate the amount(s) of the earnings per share that Waseca would report on its 2019 income statement.Frost Company has accumulated the following information relevant to its 2019 earningsper share. 1. Net income for 2019: 150,500. 2. Bonds payable: On January 1, 2019, the company had issued 10%, 200,000 bonds at 110. The premium is being amortized in the amount of 1,000 per year. Each 1,000 bond is currently convertible into 22 shares of common stock. To date, no bonds have been converted. 3. Bonds payable: On December 31, 2017, the company had issued 540,000 of 5.8% bonds at par. Each 1,000 bond is currently convertible into 11.6 shares of common stock. To date, no bonds have been converted. 4. Preferred stock: On July 3, 2018, the company had issued 3,800 shares of 7.5%, 100 par, preferred stock at 108 per share. Each share of preferred stock is currently convertible into 2.45 shares of common stock. To date, no preferred stock has been converted and no additional shares of preferred stock have been issued. The current dividends have been paid. 5. Common stock: At the beginning of 2019, 25,000 shares were outstanding. On August 3, 7,000 additional shares were issued. During September, a 20% stock dividend was declared and issued. On November 30, 2,000 shares were reacquired as treasury stock. 6. Compensatory share options: Options to acquire common stock at a price of 33 per share were outstanding during all of 2019. Currently, 4,000 shares may be acquired. To date, no options have been exercised. The unrecognized compens Frost Company has accumulated the following information relevant to its 2019 earnings ns is 5 per share. 7. Miscellaneous: Stock market prices on common stock averaged 41 per share during 2019, and the 2019 ending stock market price was 40 per share. The corporate income tax rate is 30%. Required: 1. Compute the basic earnings per share. Show supporting calculations. 2. Compute the diluted earnings per share. Show supporting calculations. 3. Indicate which earnings per share figure(s) Frost would report on its 2019 income statement.
- On 1 June 2021, Double Tree Bhd. Issues RM7 million 7% redeemable preference shares at RM1 each, redeemable at a premium of 10% on 31 May 2024. Dividend is payable on paid-up capital. The effective interest rate is 9.3 % and the interest is due on 31 May every year. Required: Show the extracts from the statements of profit or loss and the statements of financial position for the year 31 May 2021, where the redeemable preference share is measured at amortised costABC Co. had 200,000 ordinary shares, 20,000 convertible preference shares, and P1,000,000 of 5% convertible bonds outstanding during 2020. The preference shares are convertible into 40,000 ordinary shares. During 2020, ABC paid dividends of P.60 per share on the ordinary shares and P2 per share on the preference shares. Each P1,000 bond is convertible into 45 ordinary shares. The net income for 2020 was P400,000 and the income tax rate was 30%. What is the diluted Earnings Per Share for 2020? (rounded to the nearest penny)a. P1.39b. P1.41c. P1.53d. P1.67ABC Co. had 200,000 ordinary shares, 20,000 convertible preference shares, and P1,000,000 of 5% convertible bonds outstanding during 2020. The preference shares are convertible into 40,000 ordinary shares. During 2020, ABC paid dividends of P.60 per share on the ordinary shares and P2 per share on the preference shares. Each P1,000 bond is convertible into 45 ordinary shares. The net income for 2020 was P400,000 and the income tax rate was 30%. Diluted EPS for 2020 is (rounded to the nearest penny) * P1.39 P1.41 P1.53 P1.67 answer not given
- The market price of the ordinary shares at 31 December 2020 was Rs1.60. The dividend yield on ordinary shares was 2 per cent. The creditor for taxation at 31 December 2019 was Rs25 000. Taxation paid in the year ended 31 December 2020 amounted to Rs22 000. The liability for taxation on the profit of the year ended 31 December 2020 is Rs31 000 and is carried forward on the Taxation account. The retained profit for the year ended 31 December 2020 was Rs60 000. The debentures were issued in 2016. The preference shares were issued at par. The summarized Balance Sheet at 31 December 2020 of Iqra Ltd was as: Fixed assets 2550000, Net current assets 950000, 6% debentures 2019/2020 150000, Ordinary shares of Rs1, 2500000, 10% redeemable preference shares of Rs1, 300000, Share Premium account 200000 Profit and Loss Account 350000. REQUIRED Prepare IqraLtd’s Profit and Loss Account for the year ended 31 December 2020 in as much detail as possible. The Profit and Loss Account should commence…The market price of the ordinary shares at 31 December 2020 was Rs1.60. The dividend yield on ordinary shares was 2 per cent. The creditor for taxation at 31 December 2019 was Rs25 000. Taxation paid in the year ended 31 December 2020 amounted to Rs22 000. The liability for taxation on the profit of the year ended 31 December 2020 is Rs31 000 and is carried forward on the Taxation account. The retained profit for the year ended 31 December 2020 was Rs60 000. The debentures were issued in 2016. The preference shares were issued at par. The summarized Balance Sheet at 31 December 2020 of Iqra Ltd was as: Fixed assets 2550000, Net current assets 950000, 6% debentures 2019/2020 150000, Ordinary shares of Rs1, 2500000, 10% redeemable preference shares of Rs1, 300000, Share Premium account 200000 Profit and Loss Account 350000. REQUIRED Prepare Iqra Ltd’s Profit and Loss Account for the year ended 31 December 2020 in as much detail as possible. The Profit and Loss Account should commence…The market price of the ordinary shares at 31 December 2020 was Rs1.60. The dividend yield on ordinary shares was 2 per cent. The creditor for taxation at 31 December 2019 was Rs25 000. Taxation paid in the year ended 31 December 2020 amounted to Rs22 000. The liability for taxation on the profit of the year ended 31 December 2020 is Rs31 000 and is carried forward on the Taxation account. The retained profit for the year ended 31 December 2020 was Rs60 000. The debentures were issued in 2016. The preference shares were issued at par. The summarized Balance Sheet at 31 December 2020 of Iqra Ltd was as: Fixed assets 2550000, Net current assets 950000, 6% debentures 2019/2020 150000, Ordinary shares of Rs1, 2500000, 10% redeemable preference shares of Rs1, 300000, Share Premium account 200000 Profit and Loss Account 350000. Prepare Iqra Ltd’s Profit and Loss Account for the year ended 31 December 2020 in as much detail as possible. The Profit and Loss Account should commence with the…
- For the year ending 30 June 2020, Don Ltd reports a net profit after tax of $6.1 million. At the beginning of the financial year Evita Ltd had 2,500,000 fully paid ordinary shares outstanding. Don Ltd also had 1,000,000 partly paid shares. These shares were partly paid to 0.50 cents and had an original issue price of $1. The partly paid shares carry the rights to dividends in proportion to the amount paid relative to the total issue price. They were still partly paid at year end. Don Ltd also has the following securities outstanding: • $2.0 million of 10 per cent notes issued on 1 July 2019. The notes have a life of five years and give holders the right to convert the notes into 500,000 fully paid ordinary shares. • In 2016, employees were provided with options, at no initial cost, which gave them the right to acquire 750,000 shares at an exercise price of $2.50. The options expire five years after their original issue date. Given the time period to option expiry, the directors believe…PQ Co. had 200,000 ordinary shares, 20,000 shares of convertible preference shares, and $1,000,000 of 10% convertible bonds outstanding during 2021. The preference shares are convertible into 40,000 ordinary shares. During 2021, PQ paid dividends of $1.20 per share on the ordinary shares and $4 per share on the preference shares. Each $1,000 bond is convertible into 45 ordinary shares. The net income for 2021 was $800,000 and the income tax rate was 30%. Basic earnings per share for 2021 is (rounded to the nearest penny) Diluted earnings per share for 2021 is (rounded to the nearest penny)ABC Co. had 200,000 ordinary shares, 20,000 convertible preferenceshares, and P1,000,000 of 5% convertible bonds outstanding during2020. The preference shares are convertible into 40,000 ordinary shares.During 2020, ABC paid dividends of P.60 per share on the ordinary sharesand P2 per share on the preference shares. Each P1,000 bond isconvertible into 45 ordinary shares. The net income for 2020 wasP400,000 and the income tax rate was 30%. Diluted EPS for 2020 is(rounded to the nearest penny) A. P1.39B. P1.41C. P1.53D. P1.67E. answer not given
