Being that you asked for it, lol Good luck....
Financial Position Information for June 30, 2004
Long-Term Debt
Notes Payable, 10% ........................................................................$1,000,000
7% Convertable Bonds Payable...........................................................5,000,000
10% Bonds Payable...........................................................................6,000,000
Total Long Term Debt .................................................................12,000,000
Shareholder's Equity
Perfered Stock, 8.5% cumulative, $50 par value, 100,000
authorized, 25,000 shares issued and outstanding ........................$1,250,000
Common Stock, $1 par, 10,000,000 shares authorized,
1,000,000 shares issued and outstanding.......................................1,000,000
Additional Paid-in Capital..................................................................4,000,000
Retained Earings..............................................................................6,000,000
Total Shareholders; Equity..........................................................$12,500,000
The Following Transactions have also occured
1) Options were granted in 2002 to purchase 100,000 shares at $15 per share. Although no options were exercised during 2004, the average price per common share during fiscal year 2004 was $20 per share.
2) Each bond was issued at face value. The 7% convertable debenture will convert into common stock at 50 shares per $1,000 bond. It is exercisable after 5 year and was issued in 2003.
3) The 8,5% perfered stock was issued in 2002
4) There are no dividends in arrears; hoowever, preferred dividends were not declared in fiscal year 2004
5) The 1,000,000 shares of common stock were outstanding for the entire 2004 fiscal year.
6) Net income for fiscal year 2004 was $1,500,000, and the average income tax rate is 40%.
Find the Basic earnings per share and the diluted earnings per share for the fiscal year ending June 30, 2004
