Additional data:Net income for 2007 totaled $119460. The weighted average number

Additional data:Net income for 2007 totaled $119460. The weighted average number of common shares outstanding during 2007 was 40000 shares. No share options or warrants are outstanding. The effective corporate income tax rate is 30%.Required1. Prepare a schedule that lists the impact of the assumed conversion of each convertible security on diluted earnings per share.2. Prepare a ranking of the order in which each of the convertible securities should be included in diluted earnings per share.3. Compute basic earnings per share.4. Compute diluted earnings per share.5. Indicate the amount(s) of the earnings per share that Madsen Company would report on its 2007 income statement.