Cost of Goods Sold - Baked 10954907.36 Cost of Goods Sold - Merchandise 88994.79 Total Cost of Goods Sold 11,043,902.15 Gross Profit 22,962,050.80 Operating Expenses: Rent Expense 1556731.95 Wages Expense 2604526.23 Misc. Supplies Expense 263224.56 Repairs and Maintenance 20353.05 Business License Expense 211757.65 Misc. Expense 91171.08 Depreciation Expense 634520 Insurance Expense 112937.69 Advertising Expense 160413.49 Interest Expense 484703.27 Telephone Expense 50,821.34 Pension Expense 107,041.70 Retired Employees Health Ins. 43,718.91 Patent Amortization 2,500.00 Total Operating Expenses: 6,344,420.92 HOME
Operating Income 16,617,629.88 Income Taxes 4,168,847.62 Deferred tax Expense 52325.25 Total Tax Expense 4221172.87 Net Income 12396457.01 Unrealized Gain/(Loss) on Marketable Secur 265,000.00 Comprehensive Income 12131457.01
Peyton Approved Statement of Retained Earnings For Year Ended 12/31/20XX Beginning Balance: plus Comprehensive Income less Dividends: Preferred Common Ending Balance 0
2,213,122.59 12,131,457.01 50,000.00 5,250,000.00 9,044,579.60 HOME
Peyton Approved Balance Sheet As of December 31, 20XX Assets Liabilities and O Current Assets: Current Liabilities: Cash 1,488,999.34 Accounts Payable Marketable Securities 5,235,000.00 Wages Payable Accounts Receivable 7,092,495.88 Interest Payable Baking Supplies 1,605,098.52 Current Portion of Bonds Payable Merchandise Inventory 128,152.63 Income taxes currently payable Prepaid Rent 71,877.07 Accrued Pension Liability Prepaid Insurance 207,834.14 Accrued Employees Health Insuran Misc. Supplies 17,647.42 Lease Liability Contingent Liability - Lawsuit Deferred Tax Liability Total Current Assets 15,847.11 Total Current Liabilities Long Term Liabilities: Long Term/Fixed Assets: Bonds Payable 10%, 20 year Land 250,000.00 Building 1,250,000.00 Baking Equipment 2,387,729.53 Total Long Term Liabilitie Accumulated Depreciati -328,282.00 Net Fixed assets 3,559,447.53 Total Liabilities: Patent Net of Amortization 47,500.00 Preferred Stock - (10,000 authorized 5,000 issued, 10%, $100 par valu Common Stock - (2,000,000 shares authorized, 1,750,000 issued, $1 Retained Earnings Total Equity Total Assets: 19,454,052.53 Total Liabilities & Equity
Owners' Equity 1,555,212.85 250,203.31 21,888.22 1,000,000.00 1,042,493.16 107,041.70 43,718.91 106,589.53 -20,000.00 52,325.25 4,159,472.93 4,000,000.00 es: 4,000,000.00 8,159,472.93 500,000.00 ue) 1,750,000.00 par) 9,044,579.60 11,294,579.60 19,454,052.53 HOME
Peyton Approved Earnings per Share For Year Ended 12/31/20XX Net Income Less: Preferred Dividends Earnings Available to Common Shareholders Common Shares Outstanding Basic EPS If all preferred shares are converted: Net Income Additional Common Shares Common Shares Outstanding after conversion EPS if preferred shares converted Preferred shares are antidilutive If all bonds are converted: Net Income Less: Preferred Dividends Add back interest on bonds, net of income tax Earnings Available to Common Shareholders Additional Common Shares Common Shares Outstanding after conversion Fully diluted EPS HOME
Peyton plans to raise $1,000,000 million of additional capital for the coming year. They anticipate that it will enable them to earn an additional $600,000 after tax. What would be the impact on earnings per share if the raise the $1,000,000 by: a) issuing 10,000 share of 10% $100 par value convertible preferred stock, where share can be coverted into 10 shares of Peyton common stock?
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