Prepared by: C. Douglas Cloud Professor Emeritus of
AccountingPepperdine University 2011 Cengage Learning. All Rights
Reserved. May not be copied, scanned, or duplicated, in whole or in
part, ecept !or use as per"itted in a license distributed with a
certain product or service or otherwise on a password#protected
website !or classroo" use.$tudent %ersionPrepared by: C. Douglas
Cloud Professor Emeritus of AccountingPepperdine University
Long-Term Liabilities: onds and !otesChapter 1&These slides
should be viewed using the presentation mode (click the icon to
start presentation).These slides should be viewed using the
presentation mode (click the icon to start presentation). 2011
Cengage Learning. All Rights Reserved. May not be copied, scanned,
or duplicated, in whole or in part, ecept !or use as per"itted in a
license distributed with a certain product or service or otherwise
on a password#protected website !or classroo" use.Learning
"b#ective $$. Compute t%e potential impact of long-term
borro&ing on earnings per s%are. 2011 Cengage Learning. All
Rights Reserved. May not be copied, scanned, or duplicated, in
whole or in part, ecept !or use as per"itted in a license
distributed with a certain product or service or otherwise on a
password#protected website !or classroo" use.'inancing
CorporationsLO 1 LO 1Corporations (nance t%eir operations using t%e
follo&ing sources:Short-term debt, such as purchasing goods or
services on account.Long-term debt, such as issuing bonds or notes
payable.Equity, such as issuing common or preferred stock. 2011
Cengage Learning. All Rights Reserved. May not be copied, scanned,
or duplicated, in whole or in part, ecept !or use as per"itted in a
license distributed with a certain product or service or otherwise
on a password#protected website !or classroo" use.'inancing
CorporationsA bond is a form of an interest-bearing note. Li)e a
note* a bond re+uires periodic interest payments* and t%e face
amount must be repaid at t%e maturity date."bligasi merupa)an surat
utang #ang)a menenga%-pan#ang yang dapat dipinda%tangan)an yang
berisi #an#i dari pi%a) yang menerbit)an untu) membayar bunga pada
periode tertentu dan melunasi po)o) utang pada &a)tu yang tela%
ditentu)an )epada pi%a) pembeli obligasi tersebutLO 1 LO 1 2011
Cengage Learning. All Rights Reserved. May not be copied, scanned,
or duplicated, in whole or in part, ecept !or use as per"itted in a
license distributed with a certain product or service or otherwise
on a password#protected website !or classroo" use.'inancing
Corporations'uc(adee Corporation is considering the !ollowing plans
to issue debt and e)uity*LO 1 LO 1 2011 Cengage Learning. All
Rights Reserved. May not be copied, scanned, or duplicated, in
whole or in part, ecept !or use as per"itted in a license
distributed with a certain product or service or otherwise on a
password#protected website !or classroo" use.,n deciding among
(nancing plans* t%e e-ect on earnings per s%are is often
considered.Earnings per s%are .EP/0 measures t%e income earned by
eac% s%are of common stoc). ,t is computed as follo&s:LO 1 LO
1'inancing Corporations+arnings per $hare ,-et .nco"e # /re!erred
0ividends-u"ber o! Co""on $hares 1utstanding 2011 Cengage Learning.
All Rights Reserved. May not be copied, scanned, or duplicated, in
whole or in part, ecept !or use as per"itted in a license
distributed with a certain product or service or otherwise on a
password#protected website !or classroo" use.LO 1 LO 1'inancing
CorporationsAssu"e the !ollowing data !or 'uc(adee
Corporation*+arnings be!ore interest and inco"e taes are
2300,000.4he ta rate is &05.All bonds or stoc(s are issued at
their par or !ace a"ount.Rencana /endanaan Alternati! 6 Laba 2
300,000Rencana /endanaan Alternati! 6 Laba 2 300,000/lan 1 /lan 2
/lan 712 5 bonds 8 8 22,000,000/re!erred 95 stoc(, 2:0 par 8
22,000,000 1,000,000Co""on stoc(, 210 par 2&,000,000 2,000,000
1,000,0004otal 2&,000,000 2&,000,000 2&,000,000+arnings
be!ore interest and inco"e ta 2 300,000 2 300,000 2 300,0000educt
interest on bonds 8 8 2&0,000.nco"e be!ore inco"e ta 2 300,000
2 300,000 2 :;0,0000educt inco"e ta 720,000720,000 22&,000-et
inco"e 2 &30,000 2 &30,000 2 77;,0000ividends on pre!erred
stoc( 8 130,000 90,000Available !or dividends 2 &30,000 2
700,000 2 2&;,000$hares o! co""on stoc(