Kulkulcan Technology Co. provides the following data at December 31, 2011. Operating revenue . . . .

Question:

Kulkulcan Technology Co. provides the following data at December 31, 2011.

Operating revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,460,000

Operating expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $790,000

Income tax rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35%

Common stock outstanding during the entire year . . . . . . . . . . . . . . . . .. . . . . . . . 34,000 shares

On January 1, 2011, there were options outstanding to purchase 9,000 shares of common stock at $20 per share. The ending market price for the year was $26 per share. The balance sheet reports $510,000 of 7% nonconvertible bonds at December 31, 2011. (Interest expense is included in operating expenses.)

Instructions:

1. Compute basic EPS for 2011.

2. Compute diluted EPS for 2011.

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... Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...