Question
Rio Inc. had 192,500 shares of common stock outstanding throughout the year. Net income for the year was $580,000. Rio Inc. had 3 potentially dilutive
Rio Inc. had 192,500 shares of common stock outstanding throughout the year. Net income for the year was $580,000. Rio Inc. had 3 potentially dilutive securities.
| Potentially Dilutive Security | Numerator Effect | Denominator Effect |
|---|---|---|
| 1 | $28,000 | 8,250 shares |
| 2 | 7,000 | 14,000 shares |
| 3 | 0 | 3,000 shares |
a. Compute basic earnings per share.
b. Compute diluted earnings per share.
Note: Enter the earnings per share amounts in dollars and cents, rounded to the nearest penny.
| Net Income Available to Common Stockholders | Weighted Avg. Common Shares Outstanding | Per Share | |
|---|---|---|---|
| Basic EPS | Answer | Answer | Answer |
| Diluted EPS | Answer | Answer | Answer |
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Auditing And Edp
Authors: Gordon B Et Al Davis
2nd Edition
9993191930, 978-9993191933
