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Please help with Diluted earnings per share Thanks Punch Manufacturing Corporation owns 80 percent of the common shares of Short Retall Stores. The companies' balance
Please help with Diluted earnings per share Thanks
Punch Manufacturing Corporation owns 80 percent of the common shares of Short Retall Stores. The companies' balance sheets as of December 31,204, were as follows: Short Retall's 8 percent preferred stock is convertible Into 15,000 shares of common stock, and its 10 percent bonds are convertible Into 8,000 shares of common stock. Short reported net Income of $54,200 for 204 and pald dividends of $30,900. Punch Manufacturing has 11 percent preferred stock and 12 percent bonds outstanding, nelther of which is convertible. Punch reported after-tax Income, excluding investment income from Short, of $125,000 in 204 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 Intermedlate calculations and final answers to two decimal places.)Step by Step Solution
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