Fitzgerald Pharmaceutical Industries, a public company, is currently preparing the calculation for basic and diluted earnings per share and the related disclosure for Fitzgeralds financial statements. Below is selected financial information for the fiscal year ended June Fitzgerald Pharmaceutical Industries Selected Balance Sheet Information June Longterm debt Notes payable, $ convertible bonds payable bonds payable Total longterm debt $ Shareholders equity Preferred stock, cumulative, $ par value, shares authorized, shares issued and outstanding $ Common stock, $ par, shares authorized, shares issued and outstanding Additional paidin capital Retained earnings Total shareholders equity $ The following transactions have also occurred at Fitzgerald. Options were granted on July to purchase shares at $ per share. Although no options were exercised during fiscal year the average price per common share during fiscal year was $ per share. Each bond was issued at face value. The convertible bonds will convert into common stock at shares per $ bond. The bonds are exercisable after years and were issued in fiscal year The preferred stock was issued in There are no preferred dividends in arrears; however, preferred dividends were not declared in fiscal year The shares of common stock were outstanding for the entire fiscal year. Net income for fiscal year was $ and the average income tax rate is Instructions For the fiscal year ended June calculate the following for Fitzgerald Pharmaceutical Industries. a Basic earnings per share. b Diluted earnings per share.
Solve for diluted earnings per share and show formulas for every account such as
Net Income
Preferred Dividend
Interest Impact
Tax
Weighted average common shares
Diluted shares
Diluted EPS:
