Where can I find this "1000" that you included as the denominator in the fraction in cell I25, where it says, "The bonds are $5,000,000 (see the balance sheet current and long-term portion = $5,000,000 /1000 each bond x 5 shares per bond."?

In cell I25 that is part of the worksheet called EPS, is it trying to communicate and say "1,000 each bond"? What is it trying to say by 1,000 each bond? Is it trying to say "Peyton Approved's board of directors issues (sell) 5000 bonds at $1,000 each"?

How do I interpret the 25,000 number in cell H25? Does this mean that the board of directors of Peyton Approved converted 5,000 convertible bonds to 25,000 outstanding shares of common stock?

19 20 21 Long Term Liabilities: Bonds Payable 10%, 20 year $ 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 29 30 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 $ 1,750,000.00 31 $ 9,076,841.85 32 33 34 Total Equity $11,326,841.85 35 36 37 Total Assets: $19,448,977.00 Total Liabilities & Equity $19,448,977.00 1 HOME 2 Peyton Approved Earnings per Share For Year Ended 12/31/20XX 3 4 5 6 7 8 9 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 Statem $ (50,000.00) $50,000 is from ending balance of Cash dividends of Preferred stock on Trial Balance She $ 12,378,719.26 Net income ($12,428,719.26) - Preferred dividends ($50,000) $12378,719 1,750,000 Outstanding Common Shares issued (1,750,000) is from Revised Balance Sheet for 2017 $ 7.07 Earnings Available to Common Shareholders ($12,378,719.26)/Common Shares Outstand 10 11 12 If all preferred shares are converted: 13 14 15 16 Net Income Additional Common Shares corrected 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 Statem 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 conver $ 17 18 19 13 14 15 16 Net Income Additional Common Shares corrected 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 Statem 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 conve $ 17 18 19 20 21 22 23 If all bonds are converted: Net Income Less: Preferred Dividends Add back interest on bonds, net of income corrected Earnings Available to Common Shareholders Additional Common Shares Common Shares Outstanding after conversion Fully diluted EPS 24 $ 12.428.719.26 $12,428,719.26 is balance for Net income after income taxes from Revised Income Statem $ (50,000.00) $50,000 is from ending balance of Cash dividends of Preferred stock on Trial Balance She $ 300,000.00 $4,000,000*0.01*(1-0.25) $400,000*0.75 $ 300,000.00 The interest $ 12,678,719.26 $12,428,719.26 - $50,000 + $300,000 $12,678,719.26 25,000 The bonds are $5,000,000 (see the balance sheet current and long term portion = $8 1,775,000 Outstanding Common Shares issued (1,750,000) + Additional Common Shares (25000) 7.14 Earnings Available to Common Shareholders ($12,678,719.26)/Common Shares Outstand This is now correct! 25 26 27 28 13 15 14 $ 12,428,719.26 $12,428,719.26 is balance for Net income after income taxes from Revised Income Statement for 2017 5,000 5,000 is issued shares of Preferred stock from Revised Balance Sheet for 2017 16 1,755,000 Outstanding Common Shares issued (1,750,000) + Additional Common Shares (5,000) 17 $ 7.08 Net income after income taxes ($12,428,719.26)/Common Shares Outstanding after conversion ($1,755,000.00) 18 $ 19 20 23 21 $ 12,428,719.26 $12,428,719.26 is balance for Net income after income taxes from Revised Income Statement for 2017 22 $ (50,000.00) $50,000 is from ending balance of Cash dividends of Preferred stock on Trial Balance Sheet for 2017 $ 300,000.00 $4,000,000*0.01*(1-0.25) $400,000*0.75 $ 300,000.00 The interest rate is 10% not 1% so $4,000,000 x 10 = $400,000 x .75 = $300,000 24 $ 12,678,719.26 $12,428,719.26 - $50,000 + $300,000 $12,678,719.26 25,000 The bonds are $5,000,000 (see the balance sheet current and long term portion = $5,000,000 /1000 each bond x 5 shares per bond 1,775,000 Outstanding Common Shares issued (1,750,000) + Additional Common Shares (25000) 27 $ 7.14 Earnings Available to Common Shareholders ($12,678,719.26)/Common Shares Outstanding after conversion ($5,750,000.00) This is now correct! 25 26 28