P16-9 - Basic EPS and dilutive EPS are shown as separate...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
P16-9 2010 (a) Dates Shares Fraction Outstanding Outstanding of Year June 1-Aug. 31 1,000,000 1/4 Sep. 1-May 31 1,400,000 3/4 Weight-average # of shares outstanding (b) Agassi Corporation Comparative Statement of For the Year Ended May 3 2011 Income before income tax and extraordinary item $1,400,000 Income tax -560000 Income before extraordinary item $840,000 Extraordinary loss-earthquake $400,000 Less: Applicable income tax reduction 160000 $(240,000) Net Income $600,000 Earnings per share: Income before income tax and extraordinary item $0.83 Income Tax $(0.33) Income before extraordinary item $0.50 Extraordinary loss, net of tax $(0.14) Net Income $0.36 *2009 weighted average common shares were adjusted to compute EPS because of sto ( c ) (1) Agassi corp. is considered to have a simple capital structure because it does not have any secu (2) Earnings per share computation for a complex capital structure would include the basic EPS for
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Background image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: Basic EPS and dilutive EPS are shown as separate figures on the income statement. If the com Antidilutive securities increase earnings per share upon conversion or exercise. (P.817, text) 2011 Weighted Dates Shares Restatement Fraction Weighted Shares Outstanding Outstanding of Year Shares 250000 June 1-Nov. 31 1,400,000 1.20 1/2 840000 1050000 Dec. 1-May 31 1,680,000 1/2 840000 1300000 Weight-average # of shares outstanding 1680000 n f Income 31, 2011 2010 $660,000 -264000 $396,000 $396,000 $0.42 $(0.17) $0.25 $0.25 ock dividend issued in 2010(1300000*1.2=1560000) urities that could dilute earnings per common share. rmula minus impact of convertibles, warrants, options, and other dilutive securities. pany has antidulitive securities it will not report diluted EPS....
View Full Document

This note was uploaded on 08/15/2010 for the course BUS 134 taught by Professor Kailins during the Spring '10 term at 카이스트, 한국과학기술원.

Page1 / 2

P16-9 - Basic EPS and dilutive EPS are shown as separate...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online