At December 31, 2013, the financial statements of Hollingsworth Industries included the following: Net income for 2013

Question:

At December 31, 2013, the financial statements of Hollingsworth Industries included the following:

Net income for 2013 ...................... $560 million

Bonds payable,10%, convertible into 36 million shares of common stock . $300 million

Common stock:

Shares outstanding on January 1 ................. 400 million

Treasury shares purchased for cash on September 1 ........... 30 million

Additional data:

The bonds payable were issued at par in 2011. The tax rate for 2013 was 40%.

Required:

Compute basic and diluted EPS for the year ended December 31, 2013.

Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial... Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on...