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The following is a partial income statement for City Line Enterprises for the current year. Partial Income Statement Loss from Continuing Operations Income from Discontinued
The following is a partial income statement for City Line Enterprises for the current year. Partial Income Statement Loss from Continuing Operations Income from Discontinued Operations, net of tax Net Income For the Current Year The company is subject to a tax rate. Share information for the current year follows. Event and Date Number of Shares Beginning balance New share issue New share issue Twoforone split City Line provided the following information about its capital structure. The company had employee options to acquire shares at an exercise price of $ per share. The average market price of the company's shares for the current year is $ per share. The company issued $ convertible debt years ago at par value. Each $ par value bond converts to five shares of the company's common stock. City Line has $ par value, cumulative preferred shares outstanding for the entire year. The preferred shares are nonconvertible. There were no actual exercises or conversions during the year. a Compute the weightedaverage number of common shares outstanding for basic earnings per share. b Determine whether any securities are antidilutive and compute basic and diluted earnings per share. Show all computations. c Prepare all required disclosures beginning with income from continuing operations.
The following is a partial income statement for City Line Enterprises for the current year.
Partial Income Statement
Loss from Continuing Operations
Income from Discontinued Operations, net of tax
Net Income
For the Current Year
The company is subject to a tax rate. Share information for the current year
follows.
Event and Date
Number of Shares
Beginning balance
New share issue
New share issue
Twoforone split
City Line provided the following information about its capital structure. The company
had employee options to acquire shares at an exercise price of $ per share.
The average market price of the company's shares for the current year is $ per share.
The company issued $ convertible debt years ago at par value. Each
$ par value bond converts to five shares of the company's common stock. City
Line has $ par value, cumulative preferred shares outstanding for the entire
year. The preferred shares are nonconvertible. There were no actual exercises or
conversions during the year.
a Compute the weightedaverage number of common shares outstanding for basic
earnings per share.
b Determine whether any securities are antidilutive and compute basic and diluted
earnings per share. Show all computations.
c Prepare all required disclosures beginning with income from continuing
operations.
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