× Didn't find what you were looking for? Ask a question
Top Posters
Since Sunday
Home Q & A Board Other Fields Homework Help Business Accounting
New Topic  
Morgs Morgs
wrote...
Posts: 301
Rep: 0 0
6 years ago
A corporation has 3,000 shares, 10% preferred stock of $50.00 par preferred stock, and 6,000 shares of common stock outstanding. The net income for the year is $290,000. Calculate earnings per share. (Round your answer to the nearest cent.)
A) $50.00
B) $45.83
C) $48.33
D) $96.67
Textbook 
Horngren's Accounting

Horngren's Accounting


Edition: 11th
Authors:
Read 85 times
3 Replies

Related Topics

Replies
wrote...
#1
6 years ago
 B
Explanation:  B) Earnings per share = (Net Income - Preferred dividend) / Weighted average number of common shares outstanding

Net income$290,000
Less: Preferred dividend*15,000
Earnings available to common stockholders275,000
Common shares outstanding/  6,000
Earnings per share$45.83

*Preferred dividend = 3,000  $50.00  10% = $15,000
Morgs Author
wrote...
#2
6 years ago
Going to mark this solved!
wrote...
#3
6 years ago
Perfect
New Topic      
Quick Reply
Bold
Italic
Underline
Strikethrough
Subscript
Superscript
Insert Math Equation
Font Name
Font Color
Align left
Center
Align right
Bullet list
Numbered list
Insert a horizontal rule
Insert a table
Insert a Quote
View source
Explore
Post your homework questions and get free online help from our incredible volunteers
  1356 People Browsing
Start New Topic Take the Tour CoursesNew Study Tools Topics Trending Browse by Textbook
Live Chat
Show Emoticons
:):(;):P:D:|:O:?:nerd:8o:glasses::-):-(:-*O:-D>:-D:o):idea::important::help::error::warning::favorite:
Related Images
  
 1146
  
 348
  
 381
Your Opinion
Which 'study break' activity do you find most distracting?
Votes: 861
Previous poll results: Which industry do you think artificial intelligence (AI) will impact the most?