Peter Corporation Owns 90% of the Common Stock of Subsidiary

question 2

Essay

Peter Corporation owns 90% of the common stock of Subsidiary Subway.The following data is available:
The preferred stock is cumulative and convertible.The annual preferred dividends are $10,000.
Required:
1.Subway's preferred stock is convertible into 12,000 shares of Subway's common stock.Peter and Subway do not have any other potentially dilutive securities outstanding.
a.What is Subway's basic EPS and diluted EPS?
b.What is consolidated basic EPS and diluted EPS?
2.Subway's preferred stock is convertible into 12,000 shares of Peter's common stock.Peter and Subway do not have any other potentially dilutive securities outstanding.What is consolidated basic EPS and diluted EPS?

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Definitions:

Production Scheduling

The process of planning and organizing production tasks and activities to efficiently use resources, meet delivery deadlines, and achieve operational goals.

Planning Horizon

The future time period over which planning and decision-making activities are made, often varying in length depending on the strategic or operational focus.

Inventory

A list or record of items, usually tangible assets, held by an organization for sale or production purposes, indicating quantity and sometimes value.

Backlog

The accumulation of unfinished work or orders not yet processed, often indicating a delay in production or delivery.