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Lets play communications paid 50,000 USD worth of cash dividends and retained 220,000 USD from their net income in FY 2018
Lets play communications paid 50,000 USD worth of cash dividends and retained 220,000 USD from their net income in FY 2018. Their total equity at the end of FY 2017 was 330,000 and the end of FY 18 the total equity balance was including some other gains/surplus 585,000 USD. What is their comprehensive income, if any? (3) 5. We'll not play LLC had 1,000,000 average shares outstanding during all of 2017. During 2017, WNP also had 20,000 options outstanding with exercise prices of $45 each. The average stock price of WNP during 2016 was $42 and during 2017 increased 19.05% from ‘16. For purposes of computing diluted earnings per share, how many shares would be used in the denominator in 2017? What is the basic EPS if reported net income is 1,250,000 in 2017? (4)
Expert Solution
1. Begining total Equity+Retained Earnings+Comprehensive Income=End of Total equity
330,000+220,000+Comprehensive Income=585,000
Comprehensive Income=585,000-550,000=35,000
Comprehensive Income=$35,000
2. Basic EPS=Net income/Outstanding shares=1,250,000/1,000,000=$1.25
To Calculate dilued EPS, we have to add 20,000 options to 1,000,000 becoming 1,020,000
diluted EPS=1,250,000/1,020,000=$1.23
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