At December 31, 2010, Lefton, Inc

question 13

Multiple Choice

At December 31, 2010, Lefton, Inc. had 600,000 shares of common stock outstanding. On April 1, 2011, an additional 180,000 shares of common stock were issued for cash. Lefton also had $5,000,000 of 8% convertible bonds outstanding at December 31, 2010, which are convertible into 150,000 shares of common stock. The bonds are dilutive in the 2011 EPS computation. No bonds were issued or converted into common stock during 2011.
Using the information above, what is the number of shares that should be used in computing basic earnings per share for 2011?

• A) 735,000
• B) 780,000
• C) 885,000
• D) 910,000

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Definitions:

Sell-Through

The percentage of inventory sold during a specific period, a key performance indicator in retail and inventory management.

Manufacturer's Sales

The total revenue generated from goods produced and sold directly by the manufacturer to the consumer or through intermediaries.

Incentive Obstacles

Challenges that arise when the incentives of different parties involved are not aligned, potentially leading to conflicts or inefficiencies.

Supply Chain Profits

The total profit or financial gain generated through the integrated activities of procuring materials, transforming them into finished goods, and delivering them to customers.