Question
Santos Company provided the following information for 2022: Common Stock Outstanding 100,000 shares Convertible Preferred, Total Par Value $50,000; Dividend Rate 4%; Convertible into 1,900
Santos Company provided the following information for 2022: Common Stock Outstanding 100,000 shares Convertible Preferred, Total Par Value $50,000; Dividend Rate 4%; Convertible into 1,900 Common Shares Dividend Declared & Paid Stock Options A Exercise Price $12; Average Market Price $11; 3,000 Options Stock Options B Exercise Price $7; Average Market Price $8; 4,000 Options Convertible Bonds, 5%, Face Value $1,000,000; Convertible into 40,000 Common Shares Tax Rate 30% Net Income $120,000 Round to nearest two decimal places. Part A: Complete all steps to determine EPS to be reported including: 1. Computation of Basic EPS 2. Individual dilution/anti-dilution with decision making 3. Ranking of potential dilutors 4. Step-by-step inclusion of individual dilutors to arrive at reportable EPS with decision making. Part B: Partial Financial Statement Presentation of EPS for this company for the current year (2022) with a proper heading. Start your partial statement with Net Income.
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