Amy Dyken, controller at Fitzgerald Pharmaceutical Industries,

Get your original paper written from scratch starting at just $10 per page with a plagiarism report and free revisions included!

4.8

rating

SiteJabber

4.9

rating

ResellerRatings

4.9

rating

Reviews.io

Hire A Writer

Amy Dyken, controller at Fitzgerald Pharmaceutical Industries, a public company, is currently preparing the calculation for basic and diluted earnings per share and the related disclosure for Fitzgerald’s financial statements. Below is selected financial information for the fiscal year ended June 30, 2012.

FITZGERALD PHARMACEUTICAL INDUSTRIES
SELECTED BALANCE SHEET
INFORMATION
JUNE 30, 2012

Long-term debt

Notes payable, 9%

$1,067,000

8% convertible bonds payable

5,124,000

9% bonds payable

6,083,000

Total long-term debt

$12,274,000

Shareholders’ equity

Preferred stock, 5% cumulative, $54 par value,
109,400 shares authorized, 27,350 shares issued and outstanding

$1,476,900

Common stock, $1 par, 10,050,000 shares authorized,
1,005,000 shares issued and outstanding

1,005,000

Additional paid-in capital

4,002,000

Retained earnings

6,016,400

Total shareholders’ equity

$12,500,300

The following transactions have also occurred at Fitzgerald.

1.

Options were granted on July 1, 2011, to purchase 203,800 shares at $17 per share. Although no options were exercised during fiscal year 2012, the average price per common share during fiscal year 2012 was $20 per share.

2.

Each bond was issued at face value. The 8% convertible bonds will convert into common stock at 54 shares per $1,000 bond. The bonds are exercisable after 5 years and were issued in fiscal year 2011.

3.

The preferred stock was issued in 2011.

4.

There are no preferred dividends in arrears; however, preferred dividends were not declared in fiscal year 2012.

5.

The 1,005,000 shares of common stock were outstanding for the entire 2012 fiscal year.

6.

Net income for fiscal year 2012 was $1,581,000, and the average income tax rate is 40%.

For the fiscal year ended June 30, 2012, calculate the following for Fitzgerald Pharmaceutical Industries.(Round the answers to 2 decimal places, e.g. $2.45.)

(a)Basic earnings per share.

Basic earnings per share

$

(b) Diluted earnings per share.

Diluted earnings per share

$

Click if you would like to Show Work for this question:

open show Work

Stay Anonymous
With Our Essay Writing Service

The aim of our service is to provide you with top-class essay help when you ask us to write my paper; we do not collect or share any of your personal data. We use the email you provide us to send you drafts, final papers, and the occasional promotion and discount code, but that’s it!

Order Now