Multiple choice pls answer numbers 20-22
Extracted text: Gross Profit Variation Analysis and Earnings Per Share Determination 271 C. P3.74 d. P4.73 On December 31, 2005, the Mama Company had 50.000 ordinary shares issued and outstanding. On April 1. 2006. additional 10,000 ordinary shares were issued. dividend was declared. On December 1. 2006. a 20% stock Mama's net income for the year ended December 31, 2006 was P172,500. During 2006, Mama dcclared and paid P100,000 cash dividends on its bon-convertible preference share. The eamings per ordinary share, rounded to the nearest centavo, for the year ended December 31, 2006 should be P1.26. 3. b. P1.32. C. P3.00. d. P1.05. 21. Falcon Company has 2,500,000 ordinary shares outstanding on December 31, 2004. issued on April 2, 2005, and 250,000 morc on July 2, 2005. October 1, 2005, Falcon issued S,000 PI,000 face value, 7% convertible bonds. An additional 500,000 ordinary shares were On Each bond is dilutive and convertible into 40 No bonds were converted into ordinary shares in ordinary shares. 2005. What is the number of shares to be used in computing basic earnings per share and diluted earnings per share, respectively, for the year ended December 31, 2005? 2,875,000 and 2,925,000 b. 2,875,000 and 3,075,000 3,000,000 and 3,050,000 d. 3,000,000 and 3,200,000 a. с. At December 3 1, 2005, Garcia Corporation had 90,000 ordinary shares and 20,000 shares of convertibie preference shares outstanding, in addition to 9% convertible bonds payable in the face amount of P2,000,000. During 2005, Garcia paid dividends of P2.50 per share on the prefereice shares. The preference share is convertible into 20,000 ordinary sharw. The 9% convertible bonds are convertible into 30,000 ordinary sharea. Net income for 2005 was P970,000. Assume an income tax rate of 30%. How much is the diluted carnings per share for the year onded Docember 31, 2005? 22. 20