The information below pertains to Swifty Company for 2021. Net income for the year $1,210,000 7% convertible bonds issued at par ($1,000 per bond); each bond is convertible into 30 shares of common stock 1,970,000 6% convertible, cumulative preferred stock, $100 par value; each share is convertible into 3 shares of common stock 4,200,000 Common stock, $10 par value 5,820,000 Tax rate for 2021 20% Average market price of common stock $25 per share There were no changes during 2021 in the number of common shares, preferred shares, or convertible bonds outstanding. There is no treasury stock. The company also has common stock options (granted in a prior year) to purchase 71,800 shares of common stock at $20 per share. (a) Compute basic earnings per share for 2021. (Round answer to 2 decimal places, e.g. $2.55.) Basic earnings per share $ (b) Compute diluted earnings per share for 2021. (Round answer to 2 decimal places, e.g. $2.55.) Diluted earnings per share $
The information below pertains to Swifty Company for 2021. Net income for the year $1,210,000 7% convertible bonds issued at par ($1,000 per bond); each bond is convertible into 30 shares of common stock 1,970,000 6% convertible, cumulative preferred stock, $100 par value; each share is convertible into 3 shares of common stock 4,200,000 Common stock, $10 par value 5,820,000 Tax rate for 2021 20% Average market price of common stock $25 per share There were no changes during 2021 in the number of common shares, preferred shares, or convertible bonds outstanding. There is no treasury stock. The company also has common stock options (granted in a prior year) to purchase 71,800 shares of common stock at $20 per share. (a) Compute basic earnings per share for 2021. (Round answer to 2 decimal places, e.g. $2.55.) Basic earnings per share $ (b) Compute diluted earnings per share for 2021. (Round answer to 2 decimal places, e.g. $2.55.) Diluted earnings per share $
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter16: Retained Earnings And Earnings Per Share
Section: Chapter Questions
Problem 27E: Percy Company has 15,000 shares of common stock outstanding during all of 2019. It also has 2...
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The information below pertains to Swifty Company for 2021.
| Net income for the year | $1,210,000 | |
| 7% convertible bonds issued at par ($1,000 per bond); each bond is convertible into 30 shares of common stock |
1,970,000 | |
| 6% convertible, cumulative preferred stock, $100 par value; each share is convertible into 3 shares of common stock |
4,200,000 | |
| Common stock, $10 par value | 5,820,000 | |
| Tax rate for 2021 | 20% | |
| Average market price of common stock | $25 per share |
There were no changes during 2021 in the number of common
(a) Compute basic earnings per share for 2021. (Round answer to 2 decimal places, e.g. $2.55.)
| Basic earnings per share |
$
|
(b) Compute diluted earnings per share for 2021. (Round answer to 2 decimal places, e.g. $2.55.)
| Diluted earnings per share |
$
|
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