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URGENT PLEASE HELP Becca Flenn, controller at Hornglan Pharmaceutical Industries, a public company, is currently preparing the calculation for earnings per share and the related

URGENT PLEASE HELP

Becca Flenn, controller at Hornglan Pharmaceutical Industries, a public company, is currently preparing the calculation for earnings per share and the related disclosure for Hornglans financial statements. Below is selected financial information for the fiscal year ended June 30, 2020.

Hornglan Pharmaceutical Industries

Selected Balance Sheet Information

June 30, 2020.

Long-term debt

Notes payable, 10%

$1,000,000

8% convertible bonds payable

5,000,000

10% bonds payable

6,000,000

Total long-term debt

$12,000,000

Shareholders equity

Preferred stock, 6% cumulative, $50 par value, 100,000 shares authorized, 25,000 shares issued and outstanding

$1,250,000

Common stock, $1 par, 10,000,000 shares authorized, 1,000,000 shares issued and outstanding

1,000,000

Additional paid-in capital

4,000,000

Retained earnings

6,000,000

Total shareholders equity

$12,250,000

The following transactions have also occurred in Hornglan.

  1. Options were granted on July 1, 2019, to purchase 200,000 shares at $15 per share. Although no options were exercised during fiscal year 2020, the average price per common share during fiscal year 2020 was $20 per share.
  2. Each bond was issued at face value. The 8% convertible bonds will convert into common stock at 50 shares per $1,000 bond.
  3. There are no preferred dividends in arrears; however, preferred dividends were not declared in fiscal year 2020.
  4. At the beginning of the fiscal year, the company has 300,000 common shares issued and outstanding. On November 1st 2019 the company did a 1 to 2 split of the shares, which doubled the number of the shares. On January 1st 2020 the company issued 400,000 more common shares.
  5. Net income for fiscal year 2020 was $1,500,000, and the average income tax rate is 20%.

Required:

Please help Becca calculate BASIC EPS and DILUTED EPS.

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