Aming Tirta - April 2020

Soal no. 3.07 (KP 16-7)

Pref. Applicable to
ITEM Total income
Dividend Ord. shares
a) Net income 1,200,000 (240,000) 960,000
Number of ordinary shares outstanding 600,000
Basic EPS $1.60

(b) P&L basic Adjustment P&L diluted

1 Profit before interest & tax 2,162,000 2,162,000
2 Interest expense (9% x $1.800.000) (162,000) 162,000 0
3 Profit before tax 2,000,000 162,000 2,162,000
4 Income tax 40% (800,000) (64,800) (864,800)
5 Net income 1,200,000 97,200 1,297,200
6 Preference dividend (240,000) (240,000)
7 Income applicable to ordinary shares 960,000 97,200 1,057,200

dilutive
basic Total DILUSIAN
securities
8 Number of shares 600,000 600,000
9 Convertion of Bond ($2.000.000/$1.000 x #30) 60,000 60,000
10 Share
Averagepurchase
ordinaryoption
shares($25 - $20)/$25)x
+ potentially 75.000
dilutive 15,000 15,000
11 ordinary shares 600,000 75,000 675,000
12 If pref shares Converted of P/S (40.000x3) 120,000 120,000
13 Total - if P/S converted 600,000 195,000 795,000
14=7:11 EPS (if Pref. Shares not converted) $ 1.60 $ 1.57
15=5:13 EPS (if Pref. Shares converted) $ 1.60 $ 1.63

Notes :

Preference shares are not assumed converted since conversion would be antidilutive. That is,
conversion of the preference shares increases the numerator $240,000 ($4,000,000 X .06) and
the denominator 120,000 shares [(4,000,000 ÷ 100) X 3]

Purchase options :
Market price – Option price Number of incremental
x =
Market price options shares
 Aming Tirta - February 2018

1
2
3=1:2

d
e =b:c
f = a:d
 #REF!
No. 3.08 (KE 16-27) (20–25 minutes) Rumus purchase options :
(a) 2009 Diluted Market price – Option price Number of incremental
x options =
Shares assumed issued on exercise (ex option) 1,000 Market price shares
Proceeds (1,000 X £8 = £8,000) ............. $8,000
Less: Treasury shares purchased (£8,000/£20) 400 $20 -$ 8
atau x 1,000 = 600
Incremental shares............................................... 600 $20

$40,000
Diluted EPS = $3.77
10.000+600

(b) 01 Oct 2010 Diluted

Shares assumed issued on exercise ......... 1,000
Proceeds = 1.000 x $8 = £8,000 8,000
Less: Treasury shares purchased (£8,000/£20) 400
600
Incremental shares (only 3 mos ie : 3mos/12mos = 3/12) X 1/4 150

$40,000
Diluted EPS = $3.94
10.000+150
 #REF!
No. 3.09 (KE 16-26) (10–15 minutes)
1 (a) Net income ........................................................... $240,000
2 Add: Interest savings (net of tax) [$210,000 X (1 – 0,40)] $126,000
3 Adjusted net income .............................................. $366,000

4 Number of Bond ($3.000.000 : $1.000) = 3.000

5 Number of shares ex Bond (3.000 x 15) = 45.000 45,000
6 Existing number of shares given 100,000
7 Total dilutive number of shares 145,000 lembar

8=3:7 Diluted EPS: $366,000 ÷ (100.000 + 45.000) $2.52

9 (b) Shares outstanding given 100,000

10 Add: Shares assumed to be issued - ex P/S ($1.000.000:$100= 10.000 X 5) 50,000
11 Shares outstanding adjusted for dilutive securities.... 150,000

12=1:11 Diluted EPS: ($240,000 – $0) ÷ 150,000 $1.60

Note: Preference dividends are not deducted since preference shares

were assumed converted into ordinary shares.
 Aming Tirta - April 2020
No. 3.10 (KP 16-01)
a 1. Memorandum entry made to indicate the number of rights issued.

2. Cash....................................................................... 200,000
Bonds Payable ................................. 192,000
Share Premium—Share Warrants 8,000

3. Cash*................(9.500 x $32) 304,000

Share Capital—Ordinary (9,500 X €10) 95,000
Share Premium—Ordinary... 209,000
*[(100,000 – 5,000) rights exercised] ÷ [(10 rights/share) X €32 = €304,000

4. Share Premium—Share Warrants (€8.000 X 80%) 6,400

Cash (warrants exercised 1,600 X €30) 48,000
Share Capital—Ordinary (1,600 X €10) 16,000
Share Premium—Ordinary 38,400
*80% X €200,000/€100 per bond = 1,600

5. Compensation Expense (€10 X 10,000 options) 100,000

Share Premium—Share Options 100,000

6. For options exercised:

Cash (10.000 - 1.000) X €30 270,000
Share Premium—Share Options (90% X €100,000) 90,000
Share Capital—Ordinary (9,000 X €10) 90,000
Share Premium—Ordinary 270,000

For options lapsed:

Share Premium—Share Options (1.000 @ $10) 10,000
Compensation Expense*/ share premium - expired 10,000

*Note to instructor: This entry provides an opportunity to indicate that

a credit to Compensation Expense occurs when the employee fails to
fulfill an obligation, such as remaining in the employ of the company.
Conversely, if a share option lapses because the share price is lower
than the exercise price, then a credit to Share Premium—Expired

b Equity:
Share Capital—Ordinary €10 par value,
authorized 1.000.000 shares; 320.100 shares issued and outstanding 3,201,000
Share Premium—Ordinary (see detai below) 1,117,400
Share Premium—Share Warrants (8.000-6.400) 1,600
4,320,000
Retained Earnings (given) 750,000
Total Equity......................................................... 5,070,000

Calculations:
Share Share
Capital # Premium $
At beginning of year.....300,000 shares € 600,000 300,000 600,000
From share rights (entry #3) : 9,500 shares 209,000 3 9,500 209,000
From share warrants (entry #4) 1,600 shares 44,800 4 1,600 38,400
From share options (entry #6) 9,000 shares 270,000 6 9,000 270,000
Total.............................. 320,100 shares €1,123,800 320,100 1,117,400