The net income reported on the income statement of Cutler Co. was $4,000,000. There were 500,000 shares of $10 par common stock and 100,000 shares of $2 preferred stock outstanding throughout the current year. The income statement included a gain on discontinued operations of $400,000 after applicable income tax.
Determine the per-share figures for common stock for (a) income before discontinued operations and (b) net income.
Traner, Inc. reported the following for the current year:
Average common shares outstanding | 200,000 |
Average stockholders’ equity | $810,000 |
Market price per share | $22.00 |
Net income | $215,000 |
Sales revenue | $810,000 |
Average total assets | $1,620,000 |
Interest expense | $100,000 |
What is the earnings per share for the current year?
Earnings per share (EPS) is calculated as:
A. the number of shares of common stock outstanding at the end of the year divided by net income
B. net income divided by the average number of shares of common stock outstanding throughout the year
C. the average number of shares of common stock outstanding throughout the year divided by net income