What must I do to get the values associated with "If all preferred shares are converted" and the "If all bonds are converted"? Can you show me the step by step work required to calcualte the values, please?

1 2 Peyton Approved Balance Sheet As of December 31, 20XX 3 4 5 Assets 6 7 8 9 10 Current Assets: Cash Marketable Securities Accounts Receivable Baking Supplies Merchandise Inventory Prepaid Rent Prepaid Insurance Misc. Supplies $ 1,488,999.34 $ 5,235,000.00 $ 7,092,495.88 $ 1,605,098.52 $ 128,152.63 $ 71,877.07 207,834.14 $ 17,647.42 Liabilities and Owners' Equity Current Liabilities: Accounts Payable $ 1,555,212.85 Wages Payable $ 250,203.31 Interest Payable $ 21.888.22 Current Portion of Bonds Payable $ 1,000,000.00 Income taxes currently payable $ 990,167.91 Accrued Pension Liability $ 107,041.70 Accrued Employees Health Insurance $ 43,781.91 Lease Liability $ 101,514.00 Contingent Liability - Lawsuit $ Deferred Tax Liability $ 52,325.25 11 12 13 14 15 16 17 18 Total Current Assets $15,847,105.00 Total Current Liabilities $ 4,122,135.15 19 20 Long Term Liabilities: Bonds Payable 10%, 20 year 21 $ 4,000,000.00 22 23 Long Term/Fixed Assets: Land $ 250,000.00 Building $ 1,250,000.00 Baking Equipment $ 2,382,654.00 Accumulated Depreciation $ (328,282.00) Net Fixed assets 24 Total Long Term Liabilities: $ 4,000,000.00 25 26 $3,554,372.00 Total Liabilities: $ 8,122,135.15 27 28 Patent Net of Amortization $ 47,500.00 $ 500,000.00 Preferred Stock - (10,000 authorized, 5,000 issued, 10%, $100 par value) Common Stock - (2,000,000 shares authorized, 1,750,000 issued, $1 par) Retained Earnings 29 30 31 32 $ 1,750,000.00 $ 9,076,841.85 33 34 Total Equity $11,326,841.85 35 36 Total Assets: $19,448,977.00 Total Liabilities & Equity $19,448,977.00 37 A B G H L 1 HOME F Peyton Approved Earnings per Share For Year Ended 12/31/20XX 2 3 4 5 6 7 8 Net Income Less: Preferred Dividends Earnings Available to Common Shareholders Common Shares Outstanding Basic EPS $ 12,428,719.26 $12,428,719.26 is balance for Net income after income taxes from Revised Income St $ (50,000.00) $50,000 is from ending balance of Cash dividends of Preferred stock on Trial Balance $ 12,378,719.26 Net income ($12,428,719.26) - Preferred dividends ($50,000) 1,750,000 Outstanding Common Shares issued (1,750,000) is from Revised Balance Sheet for 2 $ 7.07 Earnings Available to Common Shareholders ($12 378,719 26/Common Shares Outs 9 10 12 If all preferred shares are converted: 13 14 15 correct 16 Net Income Additional Common Shares Common Shares Outstanding after conversion EPS if preferred shares converted Preferred shares are antidilutive $ 12,428,719.26 $12,428,719.26 is balance for Net income after income taxes from Revised Income St 5,000 5,000 is issued shares of Preferred stock from Revised Balance Sheet for 2017 1,755,000 Outstanding Common Shares issued (1,750,000) + Additional Common Shares (5,000 $ 7.08 Net income after income taxes ($12,428,719.26) Common Shares Outstanding after c $ 17 18 19 19 20 21 22 23 If all bonds are converted: Net Income correct Less: Preferred Dividends correct Add back interest on bonds, net of income tax correct Earnings Available to Common Shareholders correct Additional Common Shares correct Common Shares Outstanding after conversion correct Fully diluted EPS correct 24 $ 12,428,719.26 $12,428,719.26 is balance for Net income after income taxes from Revised Income St $ (50,000.00) $50,000 is from ending balance of Cash dividends of Preferred stock on Trial Balance $ 300,000.00 ($4,000,000 * 0.1)*(1 -0.25) $400,000 X (1 -0.25) $400,000 x 0.75 $ $ 12,678,719.26 $12,428,719.26 - $50,000+ $300,000 $12.678.719.26 25,000 $1,000,000.00 + $4,000,000.00 = $5$5,000,000/$1,000 = 55,000 convertible bonds x 5 1,775,000 Outstanding Common Shares issued (1,750,000) + Additional Common Shares (25,00 $ 7.14 Earnings Available to Common Shareholders ($12,678,719.26)/Common Shares Outs 25 26 27 28 31 32 33 34 35 36 37 Peyton plans to raise $1,000,000 million of additional capital for the coming year. They anticipate that it will enable them to earn an additional $600,000 after tax. What would be the impact on earnings per share if they raise the $1,000,000 by: a) issuing 10,000 share of 10% $100 par value convertible preferred stock, where each share can be converted into 10 shares of Peyton common stock? b) issuing $1,000,000 of 8% convertible bond, each $1,000 bond can be converted into? 5 shares of Peyton common stock? c) $500,000 of each of the above? 38 39 40 41 42 43 44 45 $12,428,719.26 is balance for Net income after income taxes from Revised Balance S $ 13,028,719.26 $12,428,719.26 + $600,000 $13,028,719.26 (-$1,000) $10,000 issued shares of convertible preferred stock * 0.10 annual coupon dividend ra $ 13,027,719.30 $13,028,719.26 - $1,000 = $ 3,027,719.30 1,750,000 Outstanding Common Shares issued (1,750,000) is from Revised Balance Sheet As $ 7.44 Earnings Available to Common Shareholders ($12,378,71926)/Common Shares Outs Net Income corrected Less: Preferred Dividends corrected Earnings Available to Common Shareholders corrected Common Shares Outstanding corrected Basic EPS corrected 46 47 48 49 49 a If all preferred shares are converted: 50 51 52 corrected 53 54 Net Income Additional Common Shares Common Shares Outstanding after conversion EPS if preferred shares converted Preferred shares are antidilutive $ 13,028,719.26 $13,028,719.26 is overall balance for Net income after paying income taxes from Revi: 5,000 is issued shares of Preferred stock fromRevised Balance Sheet As of Decembe Outstanding Common Shares issued (1,750,000) + Additional Common Shares (5,000 Net income after income taxes ($12,428,719.26)/Common Shares Outstanding after c $ 55 56 57 58 b 59 corrected 60 61 If all bonds are converted: Net Income Less: Preferred Dividends Add back interest on bonds, net of income tax Earnings Available to Common Shareholders Additional Common Shares Common Shares Outstanding after conversion $ 13,028,719.26 $13,028,719.26 is updated balance for Net income after income taxes from Revised In $50,000 is from ending balance of Cash dividends of Preferred stock on Trial Balance $4,000,000*0.01*(1-0.25) $400,000*0.75 30,000.00 $12,428,719.26 - $50,000 + $300,000 $12,678,719.26 $4,000,000 is dollar amount in Bonds Payable that is owed to bondholders and is on R Outstanding Common Shares issued (1,750,000) + Additional Common Shares (4,000 62 63 64 1 2 Peyton Approved Balance Sheet As of December 31, 20XX 3 4 5 Assets 6 7 8 9 10 Current Assets: Cash Marketable Securities Accounts Receivable Baking Supplies Merchandise Inventory Prepaid Rent Prepaid Insurance Misc. Supplies $ 1,488,999.34 $ 5,235,000.00 $ 7,092,495.88 $ 1,605,098.52 $ 128,152.63 $ 71,877.07 207,834.14 $ 17,647.42 Liabilities and Owners' Equity Current Liabilities: Accounts Payable $ 1,555,212.85 Wages Payable $ 250,203.31 Interest Payable $ 21.888.22 Current Portion of Bonds Payable $ 1,000,000.00 Income taxes currently payable $ 990,167.91 Accrued Pension Liability $ 107,041.70 Accrued Employees Health Insurance $ 43,781.91 Lease Liability $ 101,514.00 Contingent Liability - Lawsuit $ Deferred Tax Liability $ 52,325.25 11 12 13 14 15 16 17 18 Total Current Assets $15,847,105.00 Total Current Liabilities $ 4,122,135.15 19 20 Long Term Liabilities: Bonds Payable 10%, 20 year 21 $ 4,000,000.00 22 23 Long Term/Fixed Assets: Land $ 250,000.00 Building $ 1,250,000.00 Baking Equipment $ 2,382,654.00 Accumulated Depreciation $ (328,282.00) Net Fixed assets 24 Total Long Term Liabilities: $ 4,000,000.00 25 26 $3,554,372.00 Total Liabilities: $ 8,122,135.15 27 28 Patent Net of Amortization $ 47,500.00 $ 500,000.00 Preferred Stock - (10,000 authorized, 5,000 issued, 10%, $100 par value) Common Stock - (2,000,000 shares authorized, 1,750,000 issued, $1 par) Retained Earnings 29 30 31 32 $ 1,750,000.00 $ 9,076,841.85 33 34 Total Equity $11,326,841.85 35 36 Total Assets: $19,448,977.00 Total Liabilities & Equity $19,448,977.00 37 A B G H L 1 HOME F Peyton Approved Earnings per Share For Year Ended 12/31/20XX 2 3 4 5 6 7 8 Net Income Less: Preferred Dividends Earnings Available to Common Shareholders Common Shares Outstanding Basic EPS $ 12,428,719.26 $12,428,719.26 is balance for Net income after income taxes from Revised Income St $ (50,000.00) $50,000 is from ending balance of Cash dividends of Preferred stock on Trial Balance $ 12,378,719.26 Net income ($12,428,719.26) - Preferred dividends ($50,000) 1,750,000 Outstanding Common Shares issued (1,750,000) is from Revised Balance Sheet for 2 $ 7.07 Earnings Available to Common Shareholders ($12 378,719 26/Common Shares Outs 9 10 12 If all preferred shares are converted: 13 14 15 correct 16 Net Income Additional Common Shares Common Shares Outstanding after conversion EPS if preferred shares converted Preferred shares are antidilutive $ 12,428,719.26 $12,428,719.26 is balance for Net income after income taxes from Revised Income St 5,000 5,000 is issued shares of Preferred stock from Revised Balance Sheet for 2017 1,755,000 Outstanding Common Shares issued (1,750,000) + Additional Common Shares (5,000 $ 7.08 Net income after income taxes ($12,428,719.26) Common Shares Outstanding after c $ 17 18 19 19 20 21 22 23 If all bonds are converted: Net Income correct Less: Preferred Dividends correct Add back interest on bonds, net of income tax correct Earnings Available to Common Shareholders correct Additional Common Shares correct Common Shares Outstanding after conversion correct Fully diluted EPS correct 24 $ 12,428,719.26 $12,428,719.26 is balance for Net income after income taxes from Revised Income St $ (50,000.00) $50,000 is from ending balance of Cash dividends of Preferred stock on Trial Balance $ 300,000.00 ($4,000,000 * 0.1)*(1 -0.25) $400,000 X (1 -0.25) $400,000 x 0.75 $ $ 12,678,719.26 $12,428,719.26 - $50,000+ $300,000 $12.678.719.26 25,000 $1,000,000.00 + $4,000,000.00 = $5$5,000,000/$1,000 = 55,000 convertible bonds x 5 1,775,000 Outstanding Common Shares issued (1,750,000) + Additional Common Shares (25,00 $ 7.14 Earnings Available to Common Shareholders ($12,678,719.26)/Common Shares Outs 25 26 27 28 31 32 33 34 35 36 37 Peyton plans to raise $1,000,000 million of additional capital for the coming year. They anticipate that it will enable them to earn an additional $600,000 after tax. What would be the impact on earnings per share if they raise the $1,000,000 by: a) issuing 10,000 share of 10% $100 par value convertible preferred stock, where each share can be converted into 10 shares of Peyton common stock? b) issuing $1,000,000 of 8% convertible bond, each $1,000 bond can be converted into? 5 shares of Peyton common stock? c) $500,000 of each of the above? 38 39 40 41 42 43 44 45 $12,428,719.26 is balance for Net income after income taxes from Revised Balance S $ 13,028,719.26 $12,428,719.26 + $600,000 $13,028,719.26 (-$1,000) $10,000 issued shares of convertible preferred stock * 0.10 annual coupon dividend ra $ 13,027,719.30 $13,028,719.26 - $1,000 = $ 3,027,719.30 1,750,000 Outstanding Common Shares issued (1,750,000) is from Revised Balance Sheet As $ 7.44 Earnings Available to Common Shareholders ($12,378,71926)/Common Shares Outs Net Income corrected Less: Preferred Dividends corrected Earnings Available to Common Shareholders corrected Common Shares Outstanding corrected Basic EPS corrected 46 47 48 49 49 a If all preferred shares are converted: 50 51 52 corrected 53 54 Net Income Additional Common Shares Common Shares Outstanding after conversion EPS if preferred shares converted Preferred shares are antidilutive $ 13,028,719.26 $13,028,719.26 is overall balance for Net income after paying income taxes from Revi: 5,000 is issued shares of Preferred stock fromRevised Balance Sheet As of Decembe Outstanding Common Shares issued (1,750,000) + Additional Common Shares (5,000 Net income after income taxes ($12,428,719.26)/Common Shares Outstanding after c $ 55 56 57 58 b 59 corrected 60 61 If all bonds are converted: Net Income Less: Preferred Dividends Add back interest on bonds, net of income tax Earnings Available to Common Shareholders Additional Common Shares Common Shares Outstanding after conversion $ 13,028,719.26 $13,028,719.26 is updated balance for Net income after income taxes from Revised In $50,000 is from ending balance of Cash dividends of Preferred stock on Trial Balance $4,000,000*0.01*(1-0.25) $400,000*0.75 30,000.00 $12,428,719.26 - $50,000 + $300,000 $12,678,719.26 $4,000,000 is dollar amount in Bonds Payable that is owed to bondholders and is on R Outstanding Common Shares issued (1,750,000) + Additional Common Shares (4,000 62 63 64