Problem:
Current assets 8,000
Total assets 30,000
Current liabilities 4,000
total liabilities 5,000
stockholders equity 27,000
net income 9,000
Average number of common shares outstanding = 10,000 shares
How much is basic earnings per share?
If the company's bonds can be converted by the bond holder into 20,000 additional common shares, how much is diluted earnings per share?