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appal ANUKIS 2020 annual report Un sale unes multiple-step), and the related note that would 2. Next Level Compute the price/earnings ratio for 2020. How does this compare to 2019? Why is it different -20 Earnings per Share Winona Com ona Company began 2019 with 10,000 shares of $10 par common stock and 2,000 5 shares of 9.4%, $100 par, convertible preferred stock outstanding. On April 2 and June 1, respectively, the com- pany issued 2,000 and 6,000 additional shares of common stock. On November 16. Winona declarca stock split. The preferred stock was issued in 2018. Each share of preferred stock is currently convertible to shares of common stock. To date, no preferred stock has been converted. Current dividends have been paid on both preferred and common stock. Net income after taxes for 2019 totaled $109.800. The company is subject to a 30% income tax rate. The common stock sold at an average market price of $24 per share during 2019. Required: 1. Prepare supporting calculations for Winona and compute its: a. basic earnings per share b. diluted earnings per share 2. Show how Winona would report the earnings per share on its 2019 income statement. Include an accompany- ing note to the financial statements. 3. Next Level Assume Winona uses IFRS. Discuss what Winona would do differently for computing earnings per share, and then repeat Requirement 1 under IFRS. 1 Impact on EPS, Rankings, and Computations Waseca Company had 5 convertible securities outstanding! interest and amortized any related premium or discount using the

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