Amy Dyken, controller at Fitzgerald Pharmaceutical Industries, a public company, is currently preparing the calculation for basic and diluted earnings per share and the related disclosure for Fitzgeralds financial statements. Below is selected financial information for the fiscal year ended June 30, 2014. FITZGERALD PHARMACEUTICAL INDUSTRIES SELECTED BALANCE SHEET INFORMATION JUNE 30, 2014 Long-term debt Notes payable, 9% $1,055,000 8% convertible bonds payable 5,107,000 9% bonds payable 6,062,000 Total long-term debt $12,224,000 Shareholders equity Preferred stock, 5% cumulative, $50 par value, 108,300 shares authorized, 27,075 shares issued and outstanding $1,353,750 Common stock, $1 par, 10,011,000 shares authorized, 1,001,100 shares issued and outstanding 1,001,100 Additional paid-in capital 4,002,200 Retained earnings 6,007,300 Total shareholders equity $12,364,350 The following transactions have also occurred at Fitzgerald. 1. Options were granted on July 1, 2013, to purchase 206,500 shares at $16 per share. Although no options were exercised during fiscal year 2014, the average price per common share during fiscal year 2014 was $30 per share. 2. Each bond was issued at face value. The 8% convertible bonds will convert into common stock at 50 shares per $1,000 bond. The bonds are exercisable after 5 years and were issued in fiscal year 2013. 3. The preferred stock was issued in 2013. 4. There are no preferred dividends in arrears; however, preferred dividends were not declared in fiscal year 2014. 5. The 1,001,100 shares of common stock were outstanding for the entire 2014 fiscal year. 6. Net income for fiscal year 2014 was $1,574,000, and the average income tax rate is 45%.