accounting questions

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3.        Gold Coast Supplies had 80,000 shares of common stock outstanding at January 1. On May 1, Gold Coasts Supplies issued 21,500 shares of common stock. Outstanding all year were 30,000 shares of nonconvertible preferred stock on which a dividend of $3 per share was paid in December. Net income for the year was $300,000. Gold Coast Supplies should report basic earnings per share for the year of

a.

$2.07

b.

$2.23

c.

$3.18

d.

$3.26

 

 

          

 

     4.   Overland, Inc. had 150,000 shares of common stock issued and outstanding at December 31, 2013. On July 1, 2014, an additional 25,000 shares of common stock were issued for cash. Overland also had unexercised stock options to purchase 20,000 shares of common stock at $15 per share outstanding at the beginning and end of 2014. The market price of Overland's common stock was $20 throughout 2014. What number of shares should be used in computing diluted earnings per share for the year ended December 31, 2014?

a.

182,500

b.

180,000

c.

167,500

d.

177,500

 

 

 

 

5.        Digistore, Inc., had 400,000 shares of $20 par common stock and 40,000 shares of $100 par, 6% cumulative, convertible preferred stock outstanding for the entire year ended December 31, 2014. Each share of the preferred stock is convertible into 5 shares of common stock. Digistore's net income for 2014 was $1,680,000. For the year ended December 31, 2014, the diluted earnings per share is

a.

$2.40.

b.

$2.80.

c.

$3.60.

d.

$4.20.

 

 

    6..   On December 31, 2013, Freulein Company had 8,000 shares of common stock issued and outstanding. On April 1, 2014, an additional 1,500 shares of common stock were issued and on July 1, 500 more shares were issued. On October 1, 2014, Freulein issued 10, $1,000 maturity value, 8% convertible bonds. Each bond is convertible into 40 shares of common stock. No bonds were converted into common stock in 2014. Assuming there are no antidilutive securities, what is the number of shares Freulein should use to compute diluted earnings per share for the year ended December 31, 2014?

 

a.

9,325

b.

9,475

c.

9,525

d.

9,775

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