Lux presents Hollywood. Libre Brothers Company, the makers of Lux toilet soap, bring you the Lux Radio Theatre, starring Joan Caulfield, William Holden, and Billy DeWalt in Dear Ruth. Ladies and gentlemen, your producer, Mr. William Keeling. Greetings from Hollywood, ladies and gentlemen. Several years ago, my good friend Norman Krasner wrote a most refreshing stage play called Dear Ruth. Broadway took it to its heart, and so did picture audiences. When Paramount cast it to perfection with William Holden as the flying lieutenant, Joan Caulfield as the lady in question, and Billy DeWalt as the third party in this boisterous, romantic comedy. We're happy to present it now with those original, delightful stars. The background of our story is a typical American home. Which is another way of saying a home in which Lux toilet soap is a very common fixture. And the young ladies in our play are also typical, which is to say that while they behave in a highly unpredictable, bewildering manner, they doubtless share an American preference for Lux soap, which is a favorite beauty care of girls romantically inclined. As to where those romantic inclinations often lead, here's the first act of Dear Ruth, starling Joan Caulfield in the title role, William Holden as Bill, and Billy DeWolf as Albert, with Alan Reed as Judge Wilkins. It's a Saturday morning, a way, way back in 1944. In the Wilkins home in a pleasant suburb of New York City, the youngest member of the family, aged 16, has descended for breakfast. You like the music lesson? Yes, Mother, but how you can be so concerned with my music lesson with the world in upheaval, I fail to comprehend. Now, dear, we've been all through that. And since you can't enlist in the Marines, you might just as well...  Oh, but Mother, I've told you, our entire political science class is wearing the beret, the National Hat of France, as our protest against the State Department. State Department? The policy of the State Department as regards France is simply awful. Oh. Good morning, Edith. Good morning, dear. Good morning, Father. Dara, the judge's breakfast, please. Where's Ruth? She hasn't left yet, has she? She'll be right down. She's already had breakfast. Oh, well, Miriam, now that's what I call a cute hat. Thank you, Father. The State Department won't like it. Here's your egg, Judge, just the way you like them. Thank you, Dara, but I think not this morning. Oh, Father, I wish you'd eat eggs. For my sake. Your sake?  You'll need your strength. You signed me to give my blood? Take mine. I'm allegedly too young or something. Miriam, you had no right to sign your name and commit your father. Oh, I didn't sign my name. I signed Father's name. That's forgery. Young lady, I think... But I simply felt that as a judge, you'd set a proper example for this community. I'm a traffic judge. Let the Supreme Court give blood. Good morning, everybody. Good morning, dear. What time did you get in last night, dear? Oh, about 10.30. Wasn't that rather early? She probably had another lover's quarrel with Alder. That's enough, Miriam. I'll tell you about it later, Mother. No, after I leave. Well, I'm eating right now. Dora, if you sign my petition, may I have it, please? I signed it, Miss Miriam, but mine, mine. What is it this time? American womanhood. Miriam insists the government should draft women for the army. Mm-hmm. That's one petition I'd like to see go through. It would solve everything if this girl were drafted. Oh, you'll see all of you. Now, now tell me about the quarrel deal with Alder. Oh, it was so silly, Mother. You know, Albert doesn't want me to smoke. He's kind of a health bug. And this business about cutting out cigarettes is the latest. Well, that's hardly a quarrel. You can get around that. Sure. Smoked corn silk behind the barn. Oh, no. You cannot be angry at Albert if he solicits us about Ruth's health. Oh, but it's such a strain, Mother.  Oh, well, oh, I better get down to the corner. Albert will be along any second. Be charming, dear, but dignified. Charming but dignified? How do you manage a thing like that? I'll try, Mother. Bye, darling. More coffee, Harry? Please. They're going to draw my blood today. I'd better have something in my veins. Harry, what do you really think of Albert? Well, he's vice president of the bank, isn't he? He could support an old father-in-law very easily. But do you think Ruth likes him? I don't know, Edith. Our Ruth, he never says very much. My grandfather was like that, just like a clam. I know. I've seen his picture. Harry, do you know why Albert Cumber isn't in the army? He says he has a bad back. Well, that needn't disqualify him as a husband. There's a Lieutenant Seacross calling, Judge. Seacross? Yes, and I see Miss Ruth. Well, tell him she's gone to the bank. I beg your pardon. Oh. Oh, well, come in. Come in. Thank you. Your Ruth's father and mother. That's a fairly safe deduction, Lieutenant. Well, what I mean is I'd recognize you anywhere. Ruth told me so much about both of you and her letters. Her letters? Yes. Oh. Well, it's too bad you didn't call earlier, Lieutenant. Ruth's gone to work. Well, I could have been here in time, but I stopped her freshening up. Thirty hours ago, I was in Italy. In Italy? Well... Oh, sit down, Lieutenant. Uh, yes, yes, sir. How, um, how is everything in Italy? Oh, um, Italian. Oh. Well, uh, what time will she be home? Ruthie? Oh, not till about 5.30. Not until then, huh?  Seeing Ruth after all this time, I suppose she told you all about me. Uh, oh, yes, yes, indeed.  Oh, no, no, not a pilot. Just a bombardier. A bombardier? You must have some stories to tell. Look, you think if I showed up at the bank, they'd give Ruth a day off? You see, I've only got two days. Why don't you try? She's a teller and accounts receivable. She's in a cage with bars in front of her. Oh, the bars wouldn't stop me, sir. Uh, tell me, uh, how did you happen to be a bombardier? Well, I, uh... Well, you see, I was in the engineers when I got to England. But then there was Ruth and her letters, and she's quite a letter writer. Anyway, I was there and she was here and a war in between, so I applied for bombardier training. You see, after 25 missions, you get to come back home. Oh, they must have been some letters. Oh, they were. Considering I'm pretty nervous just being in a plane. Well, if you'll excuse me, I just can't wait to see baby. Baby?  Oh, I used to call Ruth baby, too. It's not the same thing, dear. Well, I'll just wander down to the bank and look him.  Yes, you do that. Well, anyway, I'll be back at 5.30 and thanks a lot.  But you think Ruth would confide in her own mother? She writes him letters for months and months. Doesn't even mention his existence. Oh, Bill Seacroft. Oh, that's a nice name. Yes. This one hasn't got a bad back, either. But who is he? Now, don't worry, Harry. We'll find out all about it at 5.30. I'd better set the table, Dora. It's almost 5.30. Yes, ma'am. The lieutenant will probably stay for dinner, so use the good place. Oh, and serve the $2 bottle of wine. I'll answer it, Dora. I'll get it, mother. Of course. In my telegram, I said, take back our right to vote. We resent being nothing more than producers of children. We... Oh, I'll talk to you later, Clara. A prominent member of the last generation just came home. Thank you. Is Ruth home in him? Father, the whole world's on fire. You concern yourself with the humdrum activities of a young woman who's comfortable, secure, and very well-fed. I merely asked, is Ruth home? Not yet. Oh, I've got to sit down. What's the matter? Don't you feel well? Oh, I feel fine. Father, you're pale. You went to the blood bank. Oh, I'm just crazy about you. Then stop signing my name to things. Miriam, there were 20 people at the blood bank, all women. I was the only person put to bed with a blanket over it. I certainly hope the fellow who gets my blood doesn't need it too badly. Frankly, I have no confidence in it. Oh, hello, dear. Hello. How do you feel, Harry? Oh, fine. Dandy. But you look so awful stretched out on that costume. Were you there, too? Oh, certainly. Oh, thank you, Mother. My contribution to the war effort today was two pints of blood. Your contribution? Well, it was on my idea, wasn't it? Edith, did Ruth phone? No. And I've been thinking we'd better be prepared for a quick decision. About what? That lieutenant. He's got that overseas look in his eyes. Oh. Well, I'm not in favor of hasty marriages, are you? No, but I hope somebody asks us. I'd at least like to discuss it. Hello, everybody. We're in the living room. What a wonderful day. It is? Why? What happened? Oh, nothing.  Oh, Ruth, baby. Well, Dad, aren't you going to say anything? We're delighted to get rid of you. That's what I thought. I just don't know why I cry so easily. Oh, I'll get it. It'll be for me. Well, I'm grateful for one thing. I'm certainly glad we discussed it. Dad, it's for you. Western Union. Oh, Ruth, dear. Of course, we really didn't expect you to ask our permission. Oh, not, Dad. Oh, Mother, I've got to change. He'll be here any minute. We're going out. Yes, dear. Dora, just three for dinner and save the wine. Don't forget the phone, Dad. Oh, yes. Hello? What? Read that again, please. Producers of children? Oh, no, no, no. There must be some mistake. I hardly ever send telegrams to the Secretary of War. Father, that's my telegram. But it's my telephone. Hold the phone. I pay the bill.  Thank you. Father, may I please have the phone? Hello? Yes, charge it to this number. And could you mark it personal, please? Thank you. Young woman, since when have you been corresponding with the Secretary of War? We're not corresponding. Nothing he could say would interest me. Well, I hope he never finds that out. He's a very sensitive man. Edith, not that it will make any difference, but I think we'd better go upstairs and have a talk with Ruth. Oh, this family. But we love you, Ruth, dear. And will we just wonder if you really know this boy well enough to marry him? Ruth, no one's ever been hurt by waiting. But we've waited so long already, Dad. Well? Well, huh? Very cleverly put, my dear. All right, Ruth, if your mind's made up, go on.  Oh, Dad, you should have seen him at the bank today. He was so cute. He was smoking a cigarette. Is that cute? It was all for my sake. He said it was his way of apologizing for last night. And he just about choked. Ruth, do I have any chance are you talking about Albert? Well, certainly I'm talking about Albert. Well, who did you think I was? He'll be here any second. He wants to surprise her. Look, would it be asking too much to have just a glimmer of what you two are talking about? Ruth, the lieutenant has come home. What lieutenant? Ruth, Bill's home. Bill, Seacroft, we thought he was the one you were marrying. Bill who? I haven't say. Don't you even remember him? Mother, Dora wants to know. Just a minute, Miriam. I haven't the faintest idea who or what you're talking about.  Baby? Miriam, who marched straight in here? Dora wants to know if she should make biscuits. And I want to know what you've done. I'll handle this, Edith. Miriam, what have you done? Well, but I didn't know he was coming back. Who was coming back? But how did it start? Very logically, Mother, with our bundles for Britain. Go on, Frankenstein. Well, we decided on bundles for our boy. Oh, you remember, Ruth, I was president. You're always president. Go on. Well, we sent letters with our gifts to encourage our fighting men to keep up their morale. Get to this, Lieutenant. Well, they asked for pictures. And you sent my picture to some lieutenant. That's it, isn't it? Oh, she sent more than your picture. You should have heard him. I sent him hope and faith and the will to go on. Miriam, do you realize what you've done? Yes. I made a soldier out of a lonely, frightened youngster. He's a grown man. Not in spirit. I'm not talking about his spirit. All fellas come home to see his sweetheart. He's entitled to something, and he's going to get it. Did he say that? Well, what do you suppose a boy has flown 25 missions? It's nervous and a plane anyway. Expects. Ruth, he's in love with you. Oh, but there's a limit to how much you can do with one or two letters. Miriam, how many letters were there? 63. 63? You? I wrote him 63 letters. Some were poems. What did you say in them? I said what he wanted to hear. He was lonely and frightened, and he poured out his heart to me. And who's going to pour it back? Father, I can't regret what I've done. I've given a soldier to the war. I'm sure his parents will be very happy to hear that. Oh, this is nothing short of criminal. Father, please, I'll handle everything. I'll simply tell Bill what I've done. And that will make everything all right. If you mean, do I think that's kind? No. He'll suffer. But in years to come, he'll be grateful that I gave him the opportunity to contribute as much as he was capable of in the struggle of our new generation against the old. The old generation has just one dying gas, young woman, and it's this. You're not to have any allowance for six months, and you're not to participate in any of your French, China, Lithuania, or political science freedom movements while you're under this roof. That's final. Hurry, please. You're to blame, Edith. You're the keeper of my home, the molder of my children, and I'm not satisfied with the molding. Oh, it isn't as terrible as all that, Dad. All right, Ruth. What's your solution? The solution you've always taught us, the truth. A fine, virtuous solution for us. But what about him? Mother? Yes, Maryam. Should Dora make biscuits? Biscuits! He's coming here! Now, Lieutenant Seacross. Oh, it really isn't a tragedy. Why? Why, he may even laugh at it. Now, it's funny. I may have a warped sense of humor, but I... I don't get it. Don't you move! Don't you dare! Oh, that must be Albert. Oh, dear, and I'm not nearly ready. It's Lieutenant Seacross, Judge. Fine, Dora. Fine. Just tell Lieutenant Seacross we'll be right down. Well, Lieutenant Seacross, I, uh... I believe you know my oldest daughter, Ruth. Well, uh... Yes, I do. How do you do? And this is our youngest, Miriam. Sweet 16 and never been poisoned. Not yet, that is. Oh, I, uh... I feel I know a great deal about Miriam. Uh, Ruth told me all about her in her letters. You're right, Miriam. It's our generation against the last. Thank you. Well, I, uh... I guess I know a lot about all of you. You know, I... I wondered how our first meeting would be, Ruth. Our first minute, didn't I? Well, I promised to bring you lalex, didn't I? But it's not the season for lalex. No! No, it isn't, is it? Uh, I didn't know what you'd like to do tonight, Ruth, so I got tickets for a musical show and a legitimate play and a table at the Stork. But you don't have to do any of them. Well, isn't that rather extravagant? Well, I don't care. I just don't care. Well, actually, your coming is rather a surprise in more ways than one. Ruth, I stopped at the bank today. I thought surely you saw me. No, no, I didn't. The bank policeman finally became suspicious. But we wound up having lunch together. Oh, that must be Mr. Simmons. He's very nice. Oh, Dora! Now, I wonder who that... Well, I'll just go to the window. Oh, it's that man from the bank, Mr. Comer. Never mind, Dora. I'll go. Man from the bank? Oh, yes. They want me to do some work tonight. And I'd rather not. Would you mind slipping out the back door, Lieutenant? Well, I wouldn't mind at all. Oh, uh, you'll be right out, won't you? Oh, of course. What in the world?  Well, he'll be going back overseas in a couple of days, anyway. Oh, no. He has to be told, Mother. In case anyone's interested, Father's stalling Albert in the doorway. Mother, tell Albert exactly how it happened. You mean you're going out with a Lieutenant Seacroft? I'll have to. Oh, Albert will understand. Tell him I'll call him in the morning. Good night, Ruth.  I ought to cut your throat. Well, Edith, look who's here. It's Albert. Well, come in. Oh, come in, Albert. Hello, Mother. Hello, Sis. Hello. Well, where's the bride? We've got a big date tonight. Oh, uh, Ruth. Yes, uh, congratulations. Thanks, Dad. Uh, Albert, uh, Ruth isn't home. I'll have to get used to she isn't home.  But where is she? Let's start at the beginning, Albert. You remember an organization called Bundles for Britain? Yes, I do, but... Well, there was also something called Bundles for our boys. I was president. You keep out of this. They knitted sweaters and socks for the boys, Albert. And sometimes, along with the sweaters and socks, they'd send letters, you know, to keep up with them around. At the moment, we'll return with act two of Dear Ruth. Meanwhile, here's Libby Collins, our Hollywood reporter. Libby, when we talked last week about Metro Golden Mayor's new picture, Homecoming, you said you were eager to see it. That's right, Mr. Keely. And I found it a wonderful and highly dramatic story. A perfect chance to reunite Clark Gable and Lana Turner. Yes, indeed. They were the natural choice for the surgeon and nurse. In fact, their roles seem made to order for them. And I think the same thing is true with Anne Baxter and John Hodiak. I was truly thrilled with the whole picture. And of course, I loved the romantic anger. No one could miss that, Libby. Not with Lana and Anne playing the two lovely women in Clark's life. And they are really lovely, Mr. Keely. That's why I know John Kennedy will be most interested in seeing the picture. Of course I'm interested, Libby. Why, they're two of my favorite actresses. To say nothing of being tops in the glamour department. Oh, they do make a dazzling pair in MGM's Homecoming. Luxe girls, both of them, as of course you know. One look at those million-dollar complexions and you can understand why lovely screen stars depend on gentle Luxe soap care. Nine out of ten stars recommend beauty facials with Luxe toilet soap. It's a beauty care that really works. That's why. Yes. Screen stars tell me their Luxe soap facials give skin new freshness and beauty so quickly. Tests of Luxe toilet soap by skin specialists prove that. In actually three out of four cases, complexions became softer, smoother, in a short time. So here's a tip to women everywhere.  It's Hollywood's own beauty soap, you know. Back now to our producer, William Keely. Act two of Dear Ruth, starring William Holden as Bill, Joan Caulfield as Ruth and Billy DeWolf as Albert. Sixty-three impassioned letters and a snapshot of a beautiful blonde have catapulted Lieutenant Bill Seacraft to the doorstep of Ruth Wilkins. But he's blissfully unaware that it was Ruth's young sister who wrote the letters. Or that his dream girl has just become engaged to Mr. Albert Comer, banker. Determined to explain everything, Ruth has disappeared with the enraptured Lieutenant, leaving her mother and father with a slightly frantic fiance. So you see Albert, everything's going to be all right. But where is she? Where is Ruth now? I told you she went out with him for the evening. Ruth going out with a strange man the very day we're engaged. I simply can't understand it. Wouldn't you like some coffee, Albert? It'll only take a minute. Oh, no, thank you. Oh, just look at the time. Heaven only knows what's going on. He's probably got Ruth in some nightclub, plying her with wine. Relax, Albert. After all, he's only in the air-call. He might have been a Marine, you know. This is the fourth nightclub we've been to tonight. Really, Lieutenant? Boy, if Chuck could only see us now. Who's he? Chuck, my sergeant. I wrote you about him. Oh, oh, Chuck. I thought you said Buck. Oh, Lieutenant. Bill. Bill, there's something I really have to tell you. And there's something I want to tell you, too. When I was flying over Germany, you know what I used to think about? What? This, a place like this, just you and I. You know, when you've got something to think about, you're not so scared. Bill, how did you happen to, well, feel this way about... about someone you'd never even met? Well, that's a funny question. Why? Well, I could ask you the same thing. How did you happen to feel this way about me? Oh, I never thought of that. Well, let's dance. The idea, you weren't a good dancer, baby. When did I tell you I wasn't? Well, your letters, don't you remember? Oh, Bill, we're not to talk about those letters anymore. Oh, but I loved your letters. The way they jump around. Let's free India. Let's impeach Congressman Wickley. Let's draft women. Well, I thought you'd be interested. I was crazy about him.    Bill, we're supposed to be dancing. Oh, boy, you sure are pretty. It is now 22 minutes after 1. Oh, that clocks fast, Albert. It's really only 1.15. Frankly, I can't understand your attitude. Don't either of you realize that your daughter is out with a strange bombardier who probably hasn't seen an American woman in years? Albert, don't you think you'd feel better if you went home and got some sleep? No, I don't. I'm most certainly... There's a car coming. I hear a car. Well, let me look out the window. It's room for all right. He's coming in with us. Well, we can't let them see us. Why not? It would be too embarrassing.  I just can't understand this. Upstairs! Albert, upstairs! Oh, very well. I'll switch off the lights. Good night, Bill. I had a wonderful time. So did I. Well, um... What are you so jumpy about? I can't let you walk into a dark house all alone. Bill, no, you mustn't. Oh, but, baby, I've been waiting to kiss you since 63 letters ago. Oh, now you've... Bill! Well, I can't help it, Ruth. Maybe you'll have to go. Oh, no, no, not yet. Look, look, I'll keep my hands in my pockets. Promise. Oh, Dad.  I was just coming down for a little baking soda. Good evening, sir. Have a nice time? Oh, it couldn't have been nicer. That's nice. Uh, Ruth, uh, that man from the bank. Yes? What did he have to say? Uh, that work he left, uh, it's still upstairs. Oh. It's urgent. Work? Tonight? Oh, I guess I'll have to. Oh, yes, yes, you'll have to. Oh, so good night, Bill. I'll see you tomorrow. Well, tomorrow's today already. Well, if you're not gonna leave us, Judge Wilkins... Bill! Well, just a good night kiss. Oh, don't mind me. I'm just an innocent bystander. Good night, Ruth. Good night, Bill. Well, Ruth, you can start being charming, but dignified.  Where? Hello, Albert. I have been waiting here for seven hours. Oh, no, no, no. There's nothing to get excited about. Ruth, you didn't tell that lieutenant, did you? Oh, Mother, I just couldn't. Of course, he couldn't, Mother, not unless they stopped kissing. Albert, you're jealous. Well, what the devil should I be? Oh, what? Well, he's a baby. Babies are usually kissed goodnight, but not like that. He's the most touching, romantic kid I've ever seen. Albert, I'd like to have a son just like him. How old is he? Twenty-four.  I won't ever see him again. Oh, that is after tomorrow. Tomorrow? Well, the least I can do is make things pleasant for him until he goes. No, Ruth, no. Albert, you've bought war bonds. Well, this is my contribution. I'm going to keep his morale up. After we're married, we'll both buy war bonds. Albert, but Miriam's got us into it, and there's no choice left. Oh, please say you'll trust me for twenty-four hours. Please. Oh, I'm too tired to argue. I'm so sleepy I'm numb. All right, Ruth, but something tells me I'm making a horrible mistake. Did you have a nice time tonight? Miriam, are you still awake? Do you forgive me? Don't I always? Well, your lieutenant is charming. A little impulsive, but charming. Ruth, my estimation of you has increased a thousand folds. Oh, thank you. Now, would you mind giving me just a hint of what was in those letters you sent him? I'm finding it a little difficult not knowing what I wrote. I'll get him for you right away. The ones he sent. Ruth, dear... Did he behave himself? Oh, of course, Mother. He did. Did you know that Miriam was still up? Ruth wants the letters. I realize how my actions have distressed the family, and I've made a resolution to be more careful in the future. Well, it's about time.  I've got the letters, Ruth. A shoebox, folks. They're all in chronological order. And I'm sorry I have to get you. Look at this one. 12 pages. Dear Ruth, I found your last letter most touching to think that I should remind you of that poem is quite the nicest thing that ever... In this one, he says he's in favor of large families, and he says... Oh, dear. Oh, dear. Mother, please. We're not going to read them. They're not written to us, and I didn't realize they're so personal. Aren't you going to read them? Of course. They were written to me. As the legal authority in this family, I find a slight discrepancy in your reasoning. Well, I have to read them. You know I do. Well, all I'm interested in is his reactions to the war. But come along, Harry. Good night, Ruth. Good night, Mother. Dear Ruth, I have a confession to make, darling. Last week, when your wonderful letter reached me... Good night, Ruth. Good night, Dad. Good morning, Mother. Good morning, dear. Mother. All these lilacs, where on earth... They just came, dear, from that lieutenant, a whole truck full of lilacs from the hot house. Oh, you should see downstairs. The house is simply dripping with them. What a sweet, crazy thing to do. Ruth, what did those letters say? Oh, so many things. As beautifully as anything I've ever read. He's nothing like he seems. He seems like a nice, clean-cut boy. And I certainly don't see what there is to cry about. I... I don't either, Mother. It's plain silly. Harry! Aren't you going to shave? Shave in what? The wash bowl's full of lilacs. So is my breakfast. I just had eggs, lilac. Where did Miriam go? Over to Clara's. I thought you said she had to stay home. I thought you were punishing her. Did you ever try to read the Sunday paper with Miriam sitting over there just staring at you? Good morning. May I come in? No, but why, of course. Is Ruth up? I brought her a little bouquet of... What's this? Lilacs, Albert. You are about to enter the Botanical Gardens. Watch out for the bees. He sent them. That lieutenant. Yes, he seems to be very fond of flowers. Good morning, Dad. Oh, Albert. Good morning, dear. Good morning, Ruth. Had breakfast? Yes, thank you. Albert, aren't these lilacs just gorgeous? Ruth, I want you to break your date with the lieutenant. Albert, but you couldn't be jealous. I couldn't be, but I am. But the whole thing will be over in a few hours. What's so wonderful about your girl being kissed by a stranger for a few hours? Mother, I leave it to you. Am I being unreasonable? Well, I... Dora, for heaven's sake, watch that, that carton. It just come from Miss Ruth. It's certainly a big one. This is just one of them. There's ten cartons all together. Man said it was candy popcorn. Popcorn? There's two dozen boxes in each carton. Two hundred and forty boxes of candied popcorn. Ruth, did he... It was in the letters that I loved candy popcorn. Put it all in the kitchen, Dora. I sure tried, but the kitchen's loaded with lilacs right now. Ruth, Ruth, I ask... I love you, Albert. I love you for being jealous. No woman wants a man who's never jealous, darling. If that's all it takes, I can make you pretty happy. I promise you, the lieutenant won't get on any subject that's remotely personal. Oh, I'll manage him. Believe me. My worry is, can I manage you? Now, give me a kiss. Well... There. Feel better now. Some, but it's all against my better judgment. Well, now that's odd. What's odd? Look out the window, Harry. There's a girl out there staring at our house. Well, see who she is, Edith. Maybe she's in trouble. Yes, yes. I'd better. Oh, young lady! Young lady! Think of that. So, you're Bill Seacraff's sister from Philadelphia. It's very nice meeting you all, except that I... Well, I'm so embarrassed.  Oh, of course not. How long has it been since you've seen your brother? Two years. I wish he were here. I called him from the station at his hotel and... Oh, I seem to be getting in deeper and deeper. The simple truth is, I used to be engaged to a boy named Chuck Vincent. He's a sergeant in Bill's crew, you see, and they're all at the hotel. Oh, I see. And it would be so uncomfortable if we met. We're not engaged anymore, you see. Oh, dear, I'm afraid I'm giving you the impression we're a very peculiar family. Oh, no, no. Not at all. Ruth, do you know when you're going to be married? I beg your pardon. I mean, is there a definite hour set for the ceremony? Oh, no, no, no. No definite hour, no. On the other hand, Bill may have arranged it all himself. Yes, that's so, isn't it, Mr. Cumber? Well, the reason I asked is that I'll have to leave right after the ceremony. I see. Isn't it rather warm in here? It's going to be a lot warmer, Edith. It's very warm in Philadelphia. Oh, I'll get it. It's probably Miriam. Good morning, baby. Oh, baby, you look wonderful, just wonderful. Come in. Bill, I don't believe you've met Mr. Cumber. How do you do, sir? How do you do? Pardon me, sir. Bill, what are you doing? Well, I'm trying to kiss you, of course. But that's not fair. Well, all's fair and love and war, Mr. Cumber, and I'm in both. I mean, your sister's here, didn't you even notice her? See it. Oh, Bill. Oh, gosh, honey, how are you? I'm fine, Bill, and I'm so thrilled you're coming home and getting married and everything. Well, I'm slightly thrilled myself. Look, sis, I'm sorry we'll have to run right off, but Ruth and I have... Run off? Where? Oh, but we couldn't think of leaving Martha, Bill. Oh, I don't mind, Ruth. Really, I don't. Why can't you all take a nice bus ride together? Oh, well, I'm sure they'd rather be alone.  But Ruth, baby, I... I won't go without her, Bill. And Albert will come along, too, won't you, Albert? Why, that would be wonderful. I haven't been on a bus since yesterday. Look, Ruth, this isn't what I had planned at all. We'll have a lovely time, all four of us. Now, come along, Bill. Martha, you stick right by me. Well, aren't you going, Albert? I'm going all right. Judge, I'm a patient man, but only up to a point, and it's been reached. Now, Albert, nothing can happen on a bus. It can happen the way he'll arrange it. Albert!  What about my morale? Aren't civilians human, too? Ruth, wait for me! I'm coming! CBS, the Columbia Broadcasting System. You were, dear Ruth, in just a moment. Our guest tonight, Miss Barbara Bates, seems very young indeed to be a full-fledged Warner Bros. star. How did you achieve that so soon, Barbara? Well, Mr. Keely, it's always been my ambition to be an actress. I did freelance picture work for some time before I got that studio contract. And now you're about to begin your first important screen role. Yes, and I want more than anything to make good at it. I think that one of the best ways a young actress can learn is to study famous stars on the studio sets. Imagine what a thrill it was to see Betty Davis doing the scenes for her latest picture. Winter meeting. Yes. Isn't that a nice title? Those New England sets were lovely. Snow-covered houses and village streets. Must have reminded Betty of her home in New Hampshire. That's exactly what she told me. She has a handsome new leading man in the picture, Jim Davis. No relation, of course. No. He gallantly offered to change his name to avoid confusion, but Betty wouldn't let him. You know Janice Page, of course. Yes, indeed, one of our most promising younger stars. I think she handles her role in Winter Meeting beautifully. And she loved doing it. Life's been exciting for Janice lately. She was married right after the picture was finished. Must have made a radiant bride. Oh, you should have seen her. Mr. Kennedy here would have admired her beautiful complexion. A lovely luxe complexion. Just the kind for bride to have. Well, Janice Page is a luxe girl, all right. She uses luxe toilet soap for her complexion and for her bath, too. When I saw the new bath size cake in her dressing room, I went right out and got some. And really, Mr. Kennedy, it's wonderful. That generous bath size cake is made a hit everywhere. Oh, once you've used it, you know why. Such rich, creamy lather. It makes a real beauty bath. Thank you, Miss Barbara Bates. The new bath size luxe toilet soap has the famous luxe soap perfume that leaves such a delicate flower-like fragrance on the skin. Buy it in the familiar Sampler Rapper. Let the whole family enjoy this big new bath size luxe toilet soap. We'll return you now to William Keely. Act three of Dear Ruth, starring Joan Caulfield in the title role, William Holden as Bill, and Billy DeWolf as Albert. Most two hours, the Wilkins residence, reeking somewhat of lilacs and candied popcorn, has remained ominously calm and quiet. But then the telephone rang. Harry, who phone? That was Sergeant Vincent. Sergeant Chuck Vincent. He wanted to talk to Bill, so I invited him to come on over. Oh, why, he must be the one Bill's sister was engaged to. Oh, dear, they're not supposed to meet. Well, if they're not supposed to meet, this is just the place. Edith, I've been thinking about Albert. I'm afraid Albert's going to have a bad day. Oh, he'll forget all about it by tomorrow. Harry, Albert will make a good husband, don't you think so? So calm and reserved. Where is she? Where's Ruth? Why, Albert, come in. Where's Ruth? Isn't she back? Isn't she with you? No, Mother, she is not with me. No one's here, Albert, except for Sergeant. What, Sergeant? Our friend, the Bill's. He just went upstairs. Albert, your clothes. What's happened to you? I was arrested by the Interboro Rapid Transit Company. No. Oh, yes, you got me into this, and you can get me out. Well, what seems to be the trouble? After the bus ride, he wanted to ride on the subway. How can anyone want to ride on the subway? Stop from the beginning, Albert. Four of us were standing on the platform of this train. See? Jammed against the door. We pulled into a station, the door opened, and somebody pushed me out, and I know who it was. Oh, I'm so mad, I could tell me how you got arrested. Oh, and please, please be quietly, Albert.  I got a taxi. I was going to catch that train at the next stop. Why, that was very clever of you, dear. I got to the turnstile just as the train was pulling in, but I didn't have a nickel. Oh, dear, the turnstile. And a guard grabbed me. He called a policeman. Here's the summons he gave me for stealing a nickel. Prominent bank executive arrested for stealing a nickel. Oh, my. This hasn't turned out well at all. No, it hasn't, Mother Wilkins, and I'd be very grateful to you if you wouldn't say, nothing can possibly happen. Oh, nothing can, Albert. The worst he can do is propose to Ruth, and that's just words. It's how a man proposes. You don't just ask a girl, you kiss her. And if she objects, you keep on kissing her, and Ruth will keep objecting. And I hope you don't think I'm eccentric.  You're getting blue again, Albert. Thank you. It goes with the lilacs. I guess we got separated. Yes, we did, Miss Seacroft. We're a Ruth and your brother. Oh, we got separated, too. Did Albert tell you what happened, Mrs. Wilkins? Isn't it funny? No, I wouldn't say it was exactly that. Who's that? Who's boss? That man on the stairs. Oh, oh, that's Sergeant Vincent. Come on down, Sergeant. Miss Seacroft, may I present Sergeant Vincent? How do you do? We've already met, haven't we? Now, please, Chuck, try to remember we're guests in someone's home. Oh, I'll remember, all right. Lunch is ready, Miss Wilkins. Oh, dear. Well, I don't think we'd better wait for Ruth and Bill. They've probably found something better to do. What? A lunch, everybody. Another piece of pie, Sergeant. Oh, no, thanks, Miss Wilkins. I'm sure filled up. Well, well, here's Ruth now and Lieutenant Seacroft. We're in the dining room, Ruth. We weren't sure you'd be back. Oh, that's perfectly all right. Perfectly all right. You tell them, Ruth. Well, if you won't, I will. Ruth and I are going to be married. Married? Well, what do you know? Congratulations. Well, this is something of a surprise, but congratulations. Thank you, sir. Yes, congratulations, both of you. Let's make it unanimous. Yes, why not? Congratulations. Well, thank you, sir. And you can stop addressing me as sir. I'm under 85. By the way, Ruth mentioned something about you getting married, too. Yes, but it's a little confused at the moment. Well, I hope it works out. Oh, oh, it'll work out, Albert. Believe me. The Lieutenant sure works fast, huh? Yes. I don't see how the wars lasted this long. Room so they could eat lunch. Sit down, Albert. They'll be through soon. He hasn't eaten a bite. He keeps kissing her. Well, look in there. Uh, Harry, where did that Sergeant go with Bill, sister? They said something about taking a walk. Well, I thought they weren't speaking to each other. And where's Merriam? I hope that's one blessing anyway. Ah! What is the matter with you? In there. He just kissed her again. Albert, you just have to try to understand. Judge, I have a deposit on a house. I have a minister and a church reserve. Albert, please, not so loud. He'll be leaving the country in a few hours. Do you realize what that bombardier can do in a few hours? Albert, you're getting all blue again. Quiet, quiet. Here they come. Well, did you two have a nice lunch? Oh, delicious, Mother. Mother? Oh. You know, Mr. Cumber, you and I, both being engaged, have a lot in common. Haven't we? And just call me Albert. I'm an old, old friend of the family. Well, thank you.  Gonna have kids all over the place, aren't we, Ruth? I'll call for Luciana C. Claw. Uh-oh. That's it, I bet. The ax. Axe? My orders. I call the air base before and let this number. Well, for the first time today, Ruth, I can address you without him around. Oh, darling, it isn't as serious as all that. Bill's leaving. As soon as he's gone, I'll write and tell him. Gradually, gently, I'll let him know. Ruth! Ruth! We don't have to go. We're gonna stay in America. That was a kernel. He said so. He said so himself. No! Oh, no! Yeah, we're gonna be instructors in Florida. Boy, this is my lucky day. No, I, I, I... I have to... No, no. Look, we're gonna leave tonight. If Ruth gets, if Ruth gets married in Florida, do you miss Wilkins? Well, I, I couldn't, Bill. The bank. Well, they're so short of help. Why, Albert can tell you. It'll be impossible, Lieutenant Rayleigh. Oh, shame on you, Albert. And you're about to be married yourself. Hey, Bill! Bill! We're not mad at each other anymore. Martha and I, we took a walk and patched up everything. We agreed it was my fault. Oh, no, Chuck, it was all my fault. Anyway, Bill, we want to get married. Sis, allow me to give you your first wedding present. Chuck and I don't have to go. We're staying on as instructors in Florida. We are! Oh, darling! Hey, you could marry him right now. Couldn't you, Judge? I'll do anything anybody says, anything. Ruth, Ruth, we could make it a double wedding. What do you say? Now, wait a minute. Uh, we'd have to discuss that alone, Bill.  Chuck, look, I'll pick up the tickets and get our orders. Now, you help Martha get ready. Yes, sir. Come on, Martha. Boy, oh boy. Everybody's getting married, isn't it wonderful? Bill, I have to talk to you. Oh, sure, baby, sure. I'll have to get hold of a marriage life. I'll go with you, Harry. Ruth, I'll stay or not, just as you wish. You better go along with mother and dad, Albert. Bill, let's go out in the garden. Now, don't worry about me, Albert. I'll have her convinced in five minutes. And Bill, the plain truth is, I don't intend to marry you, not now or ever. Oh, but Ruth... I thought you'd be leaving. I counted on it. You were going away to face something terribly hazardous. I had no other choice. I love you, Ruth. And you do like me. Well, don't you? Oh, Bill, there are other factors. Oh, it's entirely my fault. Oh, Bill, excuse me. I'd like to find a little gift for Martha and Chuck. Sure, go on. Go ahead. Oh. What's the matter? Nothing. That's what Ruth just said. I just saw her. She was crying. Oh. She told you. Yep, she told me. You're angry with me. No, why should I be angry with you? Oh, that's very generous of you. Oh, it must have been hard for you to find time to write all those letters. I did mine in school for typing practice. Do you feel all right? Fine. Oh, I wouldn't fear too badly about Ruth. She's pretty bourgeois. To be able to marry Albert, a reactionary of the first water. Holy age, Harry! What's the matter? You wrote those letters, didn't you? Of course I did. Well, holy age! Oh. Oh. What must she think of me? I'm the biggest sat that ever lived. You didn't know? But you said she told you. You tricked me into telling you. Albert. Albert, of course. She's engaged to Mary Albert. I didn't mean to tell you. I've only made it worse. No. Oh, no, no, no. Look, Miriam, don't let Ruth know that I know. Don't let anyone know. Oh, she did this for me. She wanted me to have these two days. Now, look, let's keep it that way, Miriam. Promise? I promise. Cross your heart? I'm not a child, Lieutenant. Well, where are you going? Oh, into town to get the ticket. Now, if you'll sign your name on the marriage certificate, Chuck. Oh, sure, Judge. Only Bill hasn't come back yet. He'll be here. Miriam, keep quiet. You were certainly lucky. I was able to find Judge Kindred. She waived the three-day waiting period when I told him what the circumstances were. Bill! I got our tickets and our orders. You and Martha have to be at Grand Central an hour. I'll leave at midnight. Oh, swell. But I can't understand you not being able to talk Ruth into going. Well, I, uh, I tried. When will you be down, Ruth? He's not going to be fit to live with until you get there. Well, I don't know exactly, Chuck. But Bill understands. Well, now that we're all here... Stand right over there, Albert. You've got to be a witness. All right, Martha. You and Chuck stand right in front of me. And lay off that pop card, Miriam, till this is over with. Yes, Father. The problems with the authority vested in me, I pronounce you man and wife. Martha, we're married. Oh, Chuck. Oh, now, children, you'll have lots of time for kissing on the train. I just don't know how to. Thank you all. Good luck, sis. Me too, Martha. I know you'll be very happy. Thank you, Ruth. My turn to kiss the bride as a man about to go to the gallows himself in two short weeks. This has all been very educational. Uh, better hurry, Martha. Yes, I'll get my seat. You're not leaving me. Perhaps we'd better go up with him, Edith. Maybe we can help. Oh, yes. Well, Lieutenant, something on your mind? Ruth, uh... Yes, Bill? Well, I, uh... I know all that happened. She did? Miriam let it slip. What? What do you know? Oh, Bill, I'm so sorry. Uh, that's... That's okay. I never thought it would go this far, but you're so... Well, impetuous, and... Well, one thing led to another, and the first thing you know... Of course, of course. You know what kills me about the whole thing? All those letters in poetry flying back and forth across the Atlantic. That kills me back and forth. That's for you, Albert. Telephone. Coming, Judge. It's the Reverend Mr. Hardwick about the church. Perfectly all right, Dad. The secret's out. We all just had a good laugh over it. Still, you'd better use the phone upstairs. Whatever you say, Dad. I hope there are no hard feelings, Bill. Well, of course not. You... You certainly couldn't have been more considered. Well, there won't be room enough in the car for all of us, so I think I'll find a taxi somewhere. Oh, uh, these are Chuck's tickets, Judge. Will you tell him I'll meet him at the train? Certainly. Goodbye. Goodbye. Good luck. Thank you, sir. Goodbye, Bill. Well, that's that. You know, I'm kind of surprised.  Oh, no. A lieutenant I've met for one day. Just one day of his being touching and amusing. And you think I'd exchange that for a man I've known for years, who offers me security, who loves me? Ruth, I only... You thought I'd marry him. You wanted me to. You prefer Bill. Ruth, I thought fate was pushing you, so I... Well, I'm a fatalist, too. But he's gone. And I'm over him already. By tomorrow, I'll be over him still more. And by the time I marry Albert, I... Boy, excuse me. I let the wrong railroad take the time. Oh, Bill. Oh, darling. Huh? Bill, Bill. Oh, I've always wanted to see Florida. What do you mean? I'm just crazy about it. Are you sure? I'm certain. Well, can you leave now? Well, I... You know, by an odd coincidence, I happen to have an extra marriage license in my pocket. Oh, you're joking. No, no, I brought it along. Just in case. Now we'll have to make it fast. Dora! Yes, sir? Get in here and be a witness. Witness? You heard me. Hold hands. Yes, sir. Not you! Ruth and Bill, here we go. Friends, we are gathered here to join this man and this woman in the bonds of holy matrimony. You're married. Oh, Ruth, baby. Hurry out the back way. I can hear them upstairs. They're coming down. I'll send you a wire, Dad. Where to send my clothes? Yes, dear. And tell Albert there's insanity in the family. Exactly. Harry, Harry, guess what? Albert just set the date with Reverend Hardwick. A week from Sunday, Dad. Oh, Ruth! Where are you, dear? Get the car, Harry. Chuck and Martha have to get to the station. Yes. Ruthie! Oh, Ruthie! Harry, that expression on your face. What's the matter? Well, you're calling Ruth, Mother. I don't think she's here. Well, where is she? Miriam, what are you doing here? I'll live here, Father. Oh. Where's Ruth? Where did she go? Now, now, be calm, Albert. There's something I wanted to... Is that you, darling? Uh-uh, it's me. Excuse me for barging in, but... But it's a sailor. Well, young man. We just docked in the Navy. I came over as fast as I could. Is Miss Ruth Wilkins at home? Harold! Harold Clobbermeyer! Miriam! Another one! Oh, no! And now I'm sure you'll want to meet our stars in person. Joan Caulfield, William Holden, and Billy DeWoe. Joan, you must be one of Hollywood's busiest actresses. One minute I see you in the newsreels, skiing in Canada, and the next minute it seems I hear you're making another picture. As a matter of fact, Mr. Keely, I just finished one at Paramount. In which I understand you play the part of a fast-working gold digger. Yes, Bill. Veronica Lake and I get chased by every wolf and sheriff from here to the Canadian border. But that doesn't sound much like the title of the picture, Joan, the Sainted Sisters.  Yeah, like Mrs. Murgatroyd, for instance, whom Billy DeWoof has introduced to theatregoers. Oh, yes, the so-called lady in the cocktail bar. What about giving us a little Mrs. Murgatroyd, Billy? Young man, would you mind watching this bag, please? Thank you very much. Young man, that bag, please. Well, wait a now, I don't know exactly what to order. I'm celebrating my wedding anniversary, and I thought, thank you very much. 18 years, 18 wonderful years with Chesley. So you can see this as soon as I... So you can see this... Excuse me. So you can see this as... Oh, that makes me so mad. I just paid the dentist 17.50. Now they shouldn't whistle back at me like that. Don't inquire if Mrs. Murgatroyd uses luck soap. But when it comes to a beautiful girl like Joan Caulfield, well, I'm sure there's no question about it. Well, that's right, Mr. Keely. I started using luck soap when I first went on the stage, and I've never been without it since. What are your plans for next week, Bill? Next Monday night, we bring our audience a play that's thrilled millions of picture-goers. Milton Sperling's Cloak and Dagger. A story of mystery, romance, and hazardous adventure in the O.S.S. And our stars are Ronald Reagan and that new exciting personality, Lillie Palmer, in the role that she created on the screen. That ought to make great listening, Mr. Keely. Sounds simply superb. Oh, I must get those fixed. Good night, Bill. Good night. And all our thanks for the award. Ladies, how would you like some sparkling new aluminum for your kitchen? The heavy, substantial kind you use for years. This big lever value lets you save from 33 and a third to 50% on beautiful, heavy-gauge, regal aluminum wear. Here's what you get. A pair of 8-inch aluminum cake pans nested for easy stacking. Only 75 cents for both, though they're worth $1.15.  Worth $2, it costs you only $1. A 9-inch fry pan, extra deep and extra heavy 10-gauge, it's worth $2, but costs you only $1. All utensils have easy to clean, rounded corners. Here's what you do to get them. Buy any two of these famous lever products. Luxe toilet soap, luxe flakes, rinse-o, life-boy, swan, silver dust, or spray. Send in two box tops or wrappers for each offer you want, together with money-saving price. Orders will be sent post-paid within three weeks. Buy your lever products at your dealer's buy-to sale. He'll give you complete details and handy order blanks. Mail to Lever Brothers Company, Homemakers Club, Box One, New York City. This offer is good through August 1, 1948, only in the continental U.S., including Alaska and Hawaii, and is subject to any state and local regulations. Don't miss this money-saving offer. And now I'm happy to make another announcement you ladies have been waiting for. It gives me pleasure to congratulate the four women who are top winners in the fifth and last week of Lever Brothers' Sensational Fur Contest. First prize goes to Mrs. Leon L. Bagley of Cornish, New Hampshire. The second prize winners are Grace R. Hossfeld of 10 Prince Avenue, Lacey Park, Hatboro, Pennsylvania. This is A. V. Deibert of 8508 Hazelwood Drive, Bethesda, 14 Maryland, and Mrs. Ernest W. Blair of 3202 Marlin Avenue, Tampa 6, Florida. Brothers Company, the makers of Lux Toilet soap, join me in inviting you to be with us again next Monday evening when the Lux Radio Theater presents Ronald Reagan and Lily Palmer in Cloak and Dagger. This is William Keely saying good night to you from Hollywood. By arrangement with Paramount Pictures, producers of The Big Clock starring Ray Milland and Charles Lawton. Billy DeWolf appeared through the courtesy of Paramount Studios who will shortly release Hazards starring Paulette Goddard and McDonald-Carrie. Our music was directed by Louis Silvers. And this is your announcer, John Milton Kennedy, reminding you to join us again next Monday night to hear Cloak and Dagger with Ronald Reagan and Lily Palmer. Ladies, get pepsidon's sensational bargain offer, for Lana Turner Ballpoint Pocket Perfumer, regular $1.95 value, yet it's yours, plus a supply of Harriet Hubbard Ayer's You Perfume for only 50 cents, fashion's newest accessory for carrying perfume, designed for Lana Turner, who stars opposite Clark Gable in MGM's hit, Homecoming. Send 50 cents with both blue-end flaps from any pepsidon carton to pepsidon Box 776, Chicago, Illinois. Good, United States and territories only. Send tonight. Be sure to listen next Monday night to the Lux Radio Theatre presentation of Cloak and Dagger with Ronald Reagan and Lily Palmer. Stay tuned for My Friend Irma, which follows immediately over most of these stations. This is CBS, the Columbia Broadcasting System.


welcome to this session in which we will discuss an earnings per share problem. This problem could be a CPA exam simulation or it could be just the college exercise asking you to compute EPS. So, Adam had revenues of 19,500 expenses other than interest and taxes of 8,600 for the year x-ray. We're assuming a 21% x-ray. Adam also had 50-1000 bonds paying 8%. Each of these bonds is convertible into 100 shares. Well, that's mean we're going to have to compute the basic and the dilutive. Why? Because the shares are the bonds are convertible. It means we have a complex capital structure. A complex capital structure would require you to compute both basic and dilutive. Throughout 20 x-ray, 2,000 shares of common stock were outstanding and none of the bonds were converted or redeemed. So, we're going to compute the basic earnings per share. Then we are going to assume the 50 bonds were issued as of October 1st rather than January 1st. So, in the first scenario, we will assume the bonds of this is year 20 x-ray. The bonds were issued as of January 1st. So, they were outstanding for the full year. Then we will work the scenario as if the bonds were issued October 1st and we compute basic earnings per share, basic EPS and dilutive EPS. Now, in this example, you are not giving the net income and we don't have a preferred stock. So, no, we don't have preferred stock. So, we don't have to worry about this. But bear in mind that we have to take net income minus preferred stock over the outstanding shares, over the shares to find the basic. But in this example, we don't have preferred stock. The best way to illustrate this example is to switch to an Excel sheet and show you the computation. Before we proceed any further, I have a public announcement about my company, farhatlectures.com. Farhat Accounting Lectures is a supplemental educational tool that's going to help you with your CPA exam preparation as well as your accounting courses. My CPA material is aligned with your CPA review course, such as Becker, Roger, Wiley, Gleam, Miles. My accounting courses are aligned with your accounting courses, broken down by chapter and topics. My resources consist of lectures, multiple choice questions, true-false questions, as well as exercises. Go ahead, start your free trial today. No obligation, no credit card required. So, we are giving 2,000 shares, number of bonds 50, they're paying 8%, and those 50 bonds, they are converted into 100 common stock. Therefore, they might increase our common stock to 5,000. Let's compute net income using the information that we are giving, which is revenues minus expenses, which will give us something called EBIT earnings before interest and taxes. And the reason we compute EBIT to kind of show you interest and taxes are reported separately, which they are indeed. Then we compute our interest. Our interest is, which is the bond, which is 50 bonds times 1,000 times 8%, which will give us interest of 4,000. Then we compute our earnings before taxes, 6,400. Then we compute our taxes using 21%, then earnings before taxes minus the taxes will give us net income. Once we have net income, we can compute our basic earnings per share, which is net income 5,056 minus 0 preferred stock divided by 2,000 shares, and that's going to give us 253. So, I'm going to round it to 253. So, that is the basic earnings per share. Now, what we're going to do next, we are going to compute the dilutive. The dilutive means what? It means your converted bonds are converted into stocks. So, what happened as a result? As a result, your interest expense should be zero. So, let's go through this computation to find out what is our dilutive EPS. Again, we have revenues of 19,000, expenses of 8,600, net income of 10,400. Now, our interest expense is zero. We don't have interest expense. Therefore, our earnings before taxes is 10,400. Our taxes is 2,184, which is 21%, and our net income is 8,216. So, what we did is this. So, what happened when we have dilutive earnings, dilutive securities such as convertible bond? What's going to happen is this. We are going to add, we are going to add to the numerator, we're going to add to the numerator, interest net of tax. Now, what is interest net of tax? Interest is 4,000, but we cannot add the 4,000 because as we lose the 4,000, we are going to pay more taxes. So, we lost the 4,000, but notice our taxes went up. Therefore, we have to add interest net of tax. How do we add interest net of tax? Well, we'll take the amount times 1 minus 0.1, which is 1 minus the tax rate. So, simply put all what we did is we took 4,000, let's see, 1 minus 0.21 is 0.79 times 4,000. So, all what we did is we added to net income 3,160. This is interest net of tax. So, if we take 3,160 plus 5,056 and it's going to give us 8,016. So, this is what we did. So, this is what we should have done in the formula, net income plus interest net of tax, but I did the complete income statement to show you how it's computed 8,216. So, we have to add the interest net of tax. Now, also we have to add 5,000 shares to the denominator because if we are converting, we have more shares. And what happened now is dilutive earnings per share is indeed dilutive 224. So, it went from 253 to 224. So, the key here is to remember when you add the interest, you added net of tax. How do you add it net of tax?  Now, this is assuming the bonds were issued January 1st. What happened if the bonds were issued October 1st? Well, let's start with the top part, revenues minus expenses equal to operating income, then interest expense. Now, interest expense, it's going to be different. It's going to be only 1,000. Why? Because we're going to take, we have 50 bonds times $1,000, those are the bonds, which is 50,000 times 8% the interest for the full year times one third. Why one third? Because they were outstanding October, November and December. As a result, you're going to have interest expense of only $1,000. So, if the bonds, if the convertible bond were issued during the year, you have to kind of only, not kind of, you have to compute the expense only for that portion of the year, which is 1,000. Your earning before taxes is 9,400. Your taxes are 1,974. Your net income is 7,426. Now, what you do is you compute basic earnings per share, which is $3.71. Now, we're going to compute the dilutive. Simply put, we're going to eliminate the interest and see what our net income would become and what will be our dilutive. Earnings before interest and taxes still 10,400. We don't have any interest. Earnings before interest and taxes is 10,400. The taxes are 8,184 and net income is 8,216. So, I'm going to go ahead and do the same formula that I did up there, which was going to be 7,426 plus interest net of tax. Interest net of tax is 1,000 times 0.79, which is 790. So, if we take 7,426 plus 790 is plus 790 equal to 8,216, which is what we computed here. I just want to show you in the income statement what it looks like and in the formula what it looks like. Now, we're going to divide this. We're going to divide this by, initially we had 2,000 shares, now we're going to convert. Now, we have to be careful. Just as we prorated, just as we prorated the interest expense, we only had 1,000 of interest expense, we have to prorate the 5,000 shares. The 5,000 shares, they're only outstanding of one third of the year, October, November and December. Therefore, we're going to take 0.33 times 5,000 and we are only going to add to the denominator 1,650. Therefore, the dilutive earnings per share, let's see, the dilutives earnings per share is how much. Let's see, let's reveal the formula here and dilutives earnings per share is $2.24, which is how did we come up with this. Again, we took now the new net income minus zero dividend because we don't have any dividend, divided by the 2,000 plus one third of 5,000, which is 1,650, which will give us a dilutive's earnings per share of $2.24, which is dilutive because earnings per share went down. So in this example, I showed you what did we do in this example. I showed you if the bonds were issued at as of the beginning of the year, we computed the basic earnings per share. Most of the time they give you net income, but this is, I like this example because you have to compute net income and you will see the effect of interest. Then if it was converted, this is what the income statement would look like. It would look zero interest expense. Then we computed assuming the bonds were issued throughout the year. It means you have to only compute the interest expense for that portion, but also you have to convert the bond only proportionally as well. So you cannot convert the full 5,000. You convert the 5,000 times one third. It happens to be October, November, and December, three months for this example. What should you do now? Go to Farhat Lectures and look at additional resources for EPS. EPS is an important topic. Good luck, study hard, and of course, stay safe.


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Okay, so this one, 1093, we just went in for a three contract position here, you're flat on Google, let's just watch the market watch. On Google, the trade price was $5 and so we have three contracts and so that would be a, what is it, a $1,500 trade, is that what it is and so we are down, yeah close to about 20%, just a little over 20% so it may be worthwhile to sort of double down here, so I'm not going to double down, I'm just going to add two because all right, so I'm just going to add two at 390 and that will make it a five contract position and so this would be a five contract at 4.5 average price so that's about a $2,200 trade at this point but you cannot double down indefinitely because I mean that's not a winning strategy at all, the next step would be a debit spread, I want to give it another chance for Google to try to find its way out of the hole that we are in but if not I'll take it into tomorrow and just make it a spread again, it's down now $800 so we need to do something about this and just keep it like that for the day, so this is what I'm suggesting, so this is a slightly more advanced technique so let's look at that, so we have five contracts on the long side, so now if you wanted to make it a credit spread you would sell the 10, 97.5, we're getting about 2.85 or perhaps more, we'll get about $3 and something because the bid ask is quite wide, I'll sell just you know either 4 or 3, so that way we don't have a sort of a risk reward that is too crazy so here we go, so if you look at this sell minus 4 and let's go to our risk profile here, so this is the risk profile, so here we are, if I do that I cannot go down any further because this is where it is right now, I cannot go down any further than that, now if I sell 5 then it becomes a credit spread, so you know we are down maybe what right now we're down 967 and if you look at this you know we can go down 2,000, so you know I don't want to do that, so I'm just going to sell 4 and I'll leave it like this because this gives me time decay here, I'll sell 4 and at least hedge the position for today, all right got filled, so this is our position right now, so any movement up will improve our situation, any movement down will have no effect, so that's where I want to leave it for today, I'll speak to you guys tomorrow, this is a trade in trouble, it had to come at some point and so we're going to deal with that, we'll take it into tomorrow, I'll speak to you guys tomorrow, thank you, I'm going to just look at the market watch here and here I know there are other stocks also that we can look at but as of now that's not my focus, I'm focusing on Google because we want to make sure that we can salvage this trade, so here we have a positive delta here, 58 positive deltas, let's see 570 and this is 1107.5, okay all right so we got it at 590, we're still down about 550 on this trade, we're still down about 550 on this trade, I think we got the debit spread in at the right time because we got 5.9, it was going for like 7.5 and 8, so as Google went down we got into the debit spread which is good, that bar was good on Google, not so good on the S&P, that was a decent bar on Google as well as the S&P but there was some selling coming in at the end over there on the S&P, so this bar is going to end, it's looking promising on the S&P, now granted there's going to be a battle over there and so you know there's a battle between the bulls and the bears going on, both Google and Boeing are pretty well correlated right now, so it looks like some selling on this bar definitely because higher volume and it got pushed down to close to the bottom, so definitely some selling there, Boeing is still looking strong okay, Boeing is still looking strong, yes definitely turning around, over the last, if you look at the last 3 or 4 bars definitely turning around, this was the only weak bar, I think there was definitely some selling there but it's looking better, it's looking better and better, but the goal is to have the PNL for the day come to 750, if the PNL for the day comes to 750 then we've broken even on the trade, now it doesn't mean that I'm going to wait till it gets to 750, if it gets to 400 or 500 I have no problem taking a losing trade because that's what the game is, we've had 10 winners in a row and so a losing trade is bound to come our way and the key is you just don't lose too much on the losing trade that's all, if anybody was in the Boeing trade that would have been a good exit, it did do a high over there, okay 21%, all right one, awesome, awesome, okay closed out, yeah okay, all right excellent, yeah I was just going to say because Boeing made a nice move there, okay so this one is up 688, this one is up 688, tell you what I'll take profit on half of it, so I'm going to buy back two of those and book about $300 profit, okay the calculations we can do even later because we can run a report on that so I'm not particularly concerned about that but I think we booked perhaps 623, 313 exactly half of this, yeah so 300 bucks we've booked profit on that and because the markets look like they want to move up so let's try to make the best out of it, so we have plus 5, minus 2, okay nice move up there, let's see where we are, all right we are up 266 for the day that was a good move on all the stocks as well as the S&P, Google's moved into very bullish of course right now it's in a transition state so it can move from very bullish back to neutral or something like that because it just moved into very bullish so we have to see it might go back into neutral but regardless at least some of the internals are telling us that okay things are looking okay for Google, Alphabet is now 1107, sorry I did that thing again let's go back to monitor, we are up 432 for the day, now we are 470, 450 so I would say totally about 700, we are required 570 plus 200, 770, okay guys this is good, all right so I'm going to first close this shot off, we got our profit there still so I'm going to buy it, buy 2 at 4, let's do it, all right yeah should get a better price 370, now it's gone up to 1108 so where do we stand, 797 so this brings us to break even on the trade for 829, we are actually up a little bit so sell 5, 930, 960, 960, Google is moving up nicely, let's see the monitor again 1058 now we are clearly in the profit here, clearly in the profit okay I'm going to close it because we've been fighting with this trade from yesterday and I want to get 950 in which case it will be about a 900 plus 200, 1100 ultimately we will be plus on this trade if you can get this order filled here at 950 so turning okay 950 exactly so we made 900 today and yesterday we made 200 so that's 1150 and you know we were down 950 at the end so the way to look at it is yesterday's video if you catch the end of that video when we converted this into a minus 4 and plus 5 you know the loss at that point was about 950 or 960 or something like that and then it ended or rather this morning it started out where we had already recovered 200 from yesterday's action and today we did 990 so we can do the reports later but basically I think we are slightly up of course granted there'll be some pretty decent commission costs on this trade because we did go in and out quite a bit so this is good guys this is the way you want to recover a losing trade because if you fight for your losers the winners will come the winners will come you have to fight for your losers and that's exactly what we did today and that's what I want to do sort of convey in this session today so if you want a free trial of this day trading signal service you can go to this Bitly link it's bitly slash day hyphen signals now the day and the the d and the s has to be capitals and once you go there you can get a free trial you can you need to sign up there and you'll get a free trial and at the end of one week if you don't want to continue you can just send us an email at info at optiontiger.com and we'll give you a full refund so once again the bitly link is bitly slash day hyphen signals with the dns in caps thank you


In the huddle is brought to you by A-plus Rintles. After going 0-10 last season, the Betsy Lane bobcats are hoping to turn things around this year. You know, you can only go up from where we was last year. A lot of injuries, a lot of things that go our way. You know, the ball bounces when it hits the ground and it didn't hit the way we wanted it to. So I'm hoping this year it bounces our way a little bit more and we get on that wind column early. Well, we've been working a lot in the off-season and stuff and we've got a lot of good players coming back, a lot of new athletes coming out and we've been working real hard and we're expecting to have a lot better season than last year. The bobcats returned a handful of seniors this year and hope to use their experience to push them ahead this season. Well, the new seniors this year, they're really good guys, they take on the responsibility really well and really get everybody in line and I'm proud of them. We returned some athletes from last year that got some good experience like Logan Lane, Jordan Kendrick, John Hall. You know, we only got a few seniors and I think the future looks bright here. We need to get as many fans out as possible, it's a lot easier to get out there and play and do well when you've got a lot of fans cheering for you rather than just hearing crickets. Is everybody going to come out Friday in the law at Sportus? Reporting in Betsy Lane for EKB News, I'm Chris Atkins.