Briefly outline the significance of the EPS as a measure of financial performance Outline TWO (2) disclosure and presentation requirements of IAS33 The firm had 10 million common stocks in issue for the year ending December 31 2022. On the 1 January 2023 it had issued $2 million of 6% convertible debentures, each $5.00 of debentures can be converted into four common shares on the 1 of January at the option of the holder of the debenture. The firm had profit after tax for the year ended December 31, 2022, of $1 850 000. The firm pays tax at 30% for the year ended. Required: Calculate the Basic and diluted EPS for the year 2022 Outline the need to disclose a diluted EPS figure and on the relevance of this to the sharehol
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- Briefly outline the significance of the EPS as a measure of financial performance
- Outline TWO (2) disclosure and presentation requirements of IAS33
The firm had 10 million common stocks in issue for the year ending December 31 2022.
On the 1 January 2023 it had issued $2 million of 6% convertible debentures, each $5.00
of debentures can be converted into four common shares on the 1 of January at the option
of the holder of the debenture.
The firm had profit after tax for the year ended December 31, 2022, of $1 850 000. The
firm pays tax at 30% for the year ended.
Required:
- Calculate the Basic and diluted EPS for the year 2022
- Outline the need to disclose a diluted EPS figure and on the relevance of this to the
sharehol
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- KPMG Pvt. Ltd. is a listed company; the company’s statement of financial position at 31 August 2020 showed the following long-term financing: $ (million) 1.2 million ordinary shares of $25 each 30 Reserves 55 85 9% loan stock 2022 30 On 31 August 2020 the shares were quoted at $ 121 cum div with a dividend of $ 5.2 per share due very shortly. Over recent years, a dividend has increased at the rate of about 5% a year. This rate expected to continue in the future. The loan stock is due to be redeemed at par on 31 August 2022. Interest is payable annually on 31 August. The post-tax cost of the loan stock is 5.5%. The company’s corporation tax rateBriefly outline the significance of the EPS as a measure of financial performance Outline TWO (2) disclosure and presentation requirements of IAS33 The firm had 10 million common stocks in issue for the year ending December 31 2022. On the 1 January 2023 it had issued $2 million of 6% convertible debentures, each $5.00 of debentures can be converted into four common shares on the 1 of January at the option of the holder of the debenture. The firm had profit after tax for the year ended December 31, 2022, of $1 850 000. The firm pays tax at 30% for the year ended. Required: Calculate the Basic and diluted EPS for the year 2022 Outline the need to disclose a diluted EPS figure and on the relevance of this to the shareholdersCurrent Attempt in Progress The information below pertains to Windsor Company for 2026. Net income for the year 7% convertible bonds issued at par ($1,000 per bond); each bond is convertible into 30 shares of common stock 6% convertible, cumulative preferred stock, $100 par value; each share is convertible into 3 shares of common stock Common stock, $10 par value Tax rate for 2026 Average market price of common stock Basic earnings per share $ b. Compute diluted earnings per share for 2026. (Round answer to 2 decimal places, e.g. 2.55.) $1,210,00 1,970,00 Diluted earnings per share $ 4,200,00 5,820,00 There were no changes during 2026 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 2026. (Round answer to 2 decimal places, e.g. 2.55.) 20% $25 per shar
- Problem 1. The stockholders' equity section of Kookie Co. revealed the following information on December 31, 2022. Preference stock, P50 par Share premium – preference Ordinary stock, P15 par Share premium – ordinary Subscribed ordinary stock Retained earnings 2,300,000 805,000 5,250,000 2,750,000 150,000 1,900,000 400,000 Subscriptions receivable – ordinary (collectible next month) Required: Answer the following questions with supporting computations: 1. How much is the legal capital? 2. How much is the total paid in capital? 3. What is the amount of the stockholders' equity on 12/31/2022? 4. How many preference shares were issued? 5. How many ordinary shares were subscribed?Required - In accordance with IAS 33 Earnings per share a. Compute basic earnings per share for 2019, b. Compute diluted earnings per share for 2019 , c. State the Presentation and Disclosure requirements The information below pertains to Rainfall plc for 2019. Net Income for the year 8% convertible bonds issued at par ($1,000 per bond); $2,000,000 each bond is convertible into 30 shares of ordinary shares; the liability component of the bonds is $1,800,000 based on a market rate of 9% 6% convertible, cumulative preference shares, $100 par value; each share is convertible into 3 shares of ordinary shares. Ordinary shares, $10 par value $1,200,000 $4,000,000 $6,000,000 Tax rate for 2019 40% Average market price of ordinary shares $25 per shareCase 1.b In 2022, the following are the equity transactions and the corresponding journal entries made. 1. On April 12, 2022, it was noted that Shipyard, Inc. purchased 4,000 its own common stock at $25 per share Apr 15 Treasury Shares Retained Earnings 2. On Jun 15, the company sold 2,500 shares for $30 per share. Apr 12 Cash Treasury Shares The table shows the equity balances as of December 31, 2022 2022 beginning Balance Common Stock acquisition Sold Treasury Stock Ending Balance Common Stock 1,130,000 1,130,000 Paid-in Common stock dividend distributable 120,000 capital in excess of par 300,000 300,000 Treasury Shares 0 -75,000 50,000 120,000 -25,000 100,000 75,000 Retained Earnings 850,000 75,000 925,000 100,000 75,000 Total 2,400,000 0 50,000 2,450,000 Requirement. (b) Evaluate whether the journal entries dated April 15, 2022 and June 12, 2022 are recorded in accordance with the recognition and measurement principles of treasury shares. (bl) If the journal entries are wrong, what…
- QUESTION 1 Meranti Majų Bhd has the following equity balances at 31 December 2019. RM'000 Share Capital – Ordinary, 22,000,000 shares outstanding Retained Earnings Exchange Translation Reserve 47,300 283,800 5,350 During 2020, the following transactions occurred: Date Transactions Issued 1 million shares at a price of RM2.20 per share. The transaction cost related to the issuance of shares was RM0.15 per share. 20 March 30 September Declared a 2% share dividend to existing shareholders. The share dividend was distributed on the same date. The market price of share was RM2.40. 31 December Declared a cash dividend of RM0.50 per share on outstanding shares. Additional information: 1. Profit for the year 2020 was RM12,000,000. Exchange translation loss recognized durihg the year 2020 was RM70,000. 2. Required: (Round all figures to TWO (2) decimal points) (a) Prepare journal entries to record the above transactions. (b) Prepare the Statement of Changes in Equity for Meranti Majų Bhd for…Questions: Calculate the basic EPS for ABC Ltd for the year ending 30 June 2023 with the follwoing details: ABC Ltd is an Australian listed company. Its results for the financial year ending 30 June 2023 have exceeded expectations—profit before tax is $5.597 million and income tax expense is $1.847 million. As at 30 June 2022, there were 9.75 million ordinary shares on issue. On 11 May 2023, 3.25 million further ordinary shares were issued at a price of $2.30—paid to $2.00. The partly paid shares carry rights to dividends in proportion to the amount paid relative to the total issue price.Weinstein's Nordic Italian Cuisine, Inc. The stockholders' equity accounts of Weinstein's Nordic Italian Cuisine, Inc. balances as of December 31, 2023: Required: Prepare the appropriate journal entry for each of the following transactions: a b PCPE d e f g Common stock, $2 par Paid in capital in excess of par Retained earnings h 15-Jan-24 14-Feb-24 9-May-24 20-Jun-24 31-Oct-24 12-Nov-24 20-Nov-24 WNIC declares a 2% stock dividend Shares of WNIC are currently selling on the NYSE at $10. Stock dividend distribution date, FMV of stock = $10.50 WNIC declares a $.25 per share cash dividend Cash dividend payment date WNIC declares a 40% stock dividend 1,680,672 375,000 3,500,000 Shares of WNIC are currently selling on the NYSE at $11. Stock dividend distribution date, FMV of stock = $11.25 WNIC declares a property dividend providing that each holder of 50 shares of common stock will receive a frozen eggplant dinner with a fair value of $8.50/dinner. The dinners are currently carried in in…
- Self-Assessment Task 6.18 Score Items Bacoor Company had 2,500,000 ordinary shares outstanding on January 1, 2021. An additional 500,000 ordinary shares were issued on April 1, 2021 and 250,000 shares on July 1, 2021. On October 1, 2021, the entity issued 5,000 P1,000 face value, 7% convertible bonds. Each bond is convertible into 40 ordinary shares. No bonds were converted into ordinary shares in 2021. What is the number of shares to be used in computing basic earnings per share and diluted earnings per share, respectively? 2,875,000 and 2,925,000 2,875,000 and 3,075,000 3,000,000 and 3,050,000 3,000,000 and 3,200,000The equity portions of a company's balance sheets for end of 2022 and 2023 are shown below: Common Stock ($0.50 par) Capital Surplus Retained Earnings O $1.42 Calculate the average price per share at which new shares were sold in 2023. $1.92 $0.75 None of these options are correct 2022 $2,268,566 $1,067,967 $2,005,277 $0.50 2023 $3,729,028 $5,223,225 $6,911,362View Policies Current Attempt in Progress The stockholders' equity accounts of Splish Company have the following balances on December 31, 2020. Common stock, $10 par, 293,000 shares issued and outstanding Paid-in capital in excess of par-common stock Retained earnings (a) Shares of Splish Company stock are currently selling on the Midwest Stock Exchange at $33. Prepare the appropriate journal entries for each of the following cases. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts) (b) (c) $2,930,000 1.190,000 5,310,000 A stock dividend of 5% is (1) declared and (2) issued. A stock dividend of 100% is (1) declared and (2) issued. A2-for-1 stock split is (1) declared and (2) issued. -71 E