Whispering Woods Retreat has net income of $400,000.The company's tax rate is 40%.The company had 100,000 shares of common stock outstanding throughout the year.The company also has two other securities:
a.Preferred stock; 6%; $100 par; 5,000 shares issued and outstanding.Each share of preferred stock is convertible into 4 shares of common stock.
b.12% long-term bonds payable; $300,000 face value.Each $1,000 bond is convertible into 25 shares of common stock.
Prepare the earnings per share information required for Whispering Woods Retreat.

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The Answer of Whispering Woods Retreat has net income of $400,000.The company's tax rate is 40%.The company had 100,000 shares of common stock outstanding throughout the year.The company also has two other securities:
a.Preferred stock; 6%; $100 par; 5,000 shares issued and outstanding.Each share of preferred stock is convertible into 4 shares of common stock.
b.12% long-term bonds payable; $300,000 face value.Each $1,000 bond is convertible into 25 shares of common stock.
Prepare the earnings per share information required for Whispering Woods Retreat.

Whispering Woods Retreat Has Net Income of $400,000