I need help completing the EPS section of my workbook, it comes in 2 parts. Below is what I completed and it was marked incorrect.
Part 1.
Assets Current Assets: Cash Marketable Securities Accounts Receivable Baking Supplies Merchandise Inventory Prepaid Rent Prepalo Insurance Misc. Supplies Total Current Assets Long TemuFixed Assets: Land Building Baking Equipment Accumulated Depreciation Net Fixed assets Patent Net of Amortization Total Assets: 1,488,999.34 5,235,888.88 7,892,495.88 1,885,898.52 128,152.63 71,877.87 287,834.14 17,647.42 250,000.00 1,250,000.00 2,307,729.53 {320,202.00} Peyton Approved Balance Sheet As of December 31, 201K 1 5,847,185.80 3, 558,447. 53 47,580. 88 1 8,454,852.53 Liabilities and Owners' Equity Current Liabilities: Accounts Payable 1,555,212.85 Wages Payable 250,203.31 Interest Payable 21,888.22 Current Portion of Bonds Payable 1,888,888.88 Income taxes currently payable 1,042,493.16 Accrued Pension Liability 187,841.78 Accrueo Employees Health Insurance 43,?1891 Lease Liability 86,589.53 Contingent Liability Lawsuit Deferred Tail Liability 52,325.25 Total Current Liabilities 4,158,472.93 Long Term Liabilities: Bonds Payable 18%, 28 year 4,800,800.80 Total Long Term Liabilities: 8,158,472.53 Total Liabilities: Preferred Stock {18,888 authorized, 588,888.88 5,888 issued, 18%, $188 par value} Common Stock {2,888,888 shares 1,758,888.88 authorized, 1,758,888 isSUEd, $1 par} Retained Earnings 9,844,579.68 Total Equity 11,254,578.58 Total Liabilities & Equity 19,454,852.53 Peyton Approved Earnings per Share For Year Ended 121311203 Net Income Less: Preferred Dividends . Earnings Available to Common Shareholders Common Shares Outstanding if all preferred shares are converted: Net Income Additional Common Shares Common Shares Outstanding alter comersion EPS if preferred shares converted it all bonds are converted: Net income Less: Preferred Dividends Add back interest on bonds, net of income tax Earnings Available to Common Shareholders Additional Common Shares Common Shares Outstanding alter conversion Fully diluted EPS 12,390,45701 50,000.00 12,340,45701 1 350,000.00 7.00 1239045701 599.9999? 2,250,000.00 5.51 Preferred shares are antidilutive I 12,306,45701 50,000.00 1 000,000.00 _1 3,340,45?.01 2,000.00000 3,750,000.00 3.50 Peyton Approved Statement of Retained Earnings For Year Ended 12/31/20XX Beginning Balance: 2,213, 122.59 plus Comprehensive Income 12, 131,457.01 less Dividends: Preferred 50,000.00 Common 5,250,000.00 Ending Balance 9,044,579.60Peyton plans to raise $1,000,000 million of additional capital for the coming year. They anticipate that it will enable them to earn an additional $600,000 after tax. What would be the impact on earnings per share if the raise the $1,000,000 by: a) issuing 10,000 share of 10% $100 par value convertible preferred stock, where share can be coverted into 10 shares of Peyton common stock? b) issuing $1,000,000 of 8% convertible bond, each $1,000 bond can be converted into? 5 shares of Peyton common stock? c) $500,000 of each of the above? Net Income 12,396,457.01 Less: Preferred Dividends 100,000.00 Earnings Available to Common Shareholders 12,296,457.01 Common Shares Outstanding 1,750,000.00 Basic EPS 7.06 a If all preferred shares are converted: Net Income 12,396,457.01 Additional Common Shares 100,000.00 Common Shares Outstanding after conversion 1,850,000.00 EPS if preferred shares converted 6.70 Preferred shares are antidilutive b If all bonds are converted: Net Income 12,396,457.01 Less: Preferred Dividends Add back interest on bonds, net of income tax 60,000.00 Earnings Available to Common Shareholders 12,456,457.01 Additional Common Shares 5,000.00 Common Shares Outstanding after conversion 1,755,000.00 EPS if preferred shares converted 7.10
