I recently asked this question. The tutor helping me provided 4 answers but all came back as incorrect. There is a rounding portion to this question, so for every answer given I have tried 1 below and above to see if that was the issue.
\fShort Retail's 8 percent preferred stock is convertible into 14.000 shares ofcommon stock. and its 10 percent bonds are convertible into 8.000 shares of common stock. Short reported net income of $50.00*) for mm and paid dividends of $30300. Punch Manufacturing has 11 percent preferred stock and 12 percent bonds outstanding. neither of which is convertible. Punch reported after-tax income. excluding im'estrnent income from Short. of $115.000 in 2mm and paid dividends of$E~3.000. The companies le separate tax returns and are subject to a 40 percent income tax. Hequlred: Compute basic and diluted EPS for The consolidated entity. {Hound your intermediate calculation and nal answer: to two decimal places.) Basie earrings per share 5 0.25 a ilutad earnings :per share 5 Lot 3 Is this answer helpful? Ask another question Your feedback will help us provide a better solution You 2 days ago Both answers came back as wrong You 2 days ago I tried rounding up and down 1 and both options came back wrong as well JoelChristian01 a day ago Try this. BEPS = 9.25 DEPS = 7.81 You 18 hours ago both came back as incorrect. Again I tested the rounding up and down but was incorrect. Add a comment if you have any follow-up question about this answer SendPunch Manufacturing Corporation owns 80 percent of the common shares of Short Retail Stores. The companies' balance sheets as of December 31, 20X4. were as follows: Punch Manufacturing Short Corporation Retail Stores Assets Cash $ 53,090 33,908 Accounts Receivable 107,098 Inventory 270, 090 135,808 Land 120,098 90, 098 Buildings and Equipment 490, Que 330,098 Less: Accumulated Depreciation (225,090) (125, 090) Investment in Short Retail Stores 132,090 Total Assets $ 947,098 $ 550,908 Liabilities and Equity Accounts Payable $ 127,090 $ 95,090 Bonds Payable 270, 090 Preferred Stock ($10 par value) 290, 090 90, 808 Common Stock: $10 par value 150,098 $5 par value 189,808 Retained Earnings 203, 098 65,909 Total Liabilities and Equity $ 947, 090 550,090 Short Retail's 8 percent preferred stock is convertible into 14,000 shares of common stock, and its 10 percent bonds are convertible into 8,000 shares of common stock. Short reported net income of $50,000 for 20X4 and paid dividends of $30.900. Punch Manufacturing has 11 percent preferred stock and 12 percent bonds outstanding. neither of which is convertible. Punch reported after-tax income, excluding investment income from Short, of $115,000 in 20X4 and paid dividends of $63,000. The companies file separate tax returns and are subject to a 40 percent income tax. Required: Compute basic and diluted EPS for the consolidated entity. (Round your Intermediate calculations and final answers to two decimal places.) Basic eamings per share Diluted earnings per share
