2009 2010 2009 2010 Cash $3300 $2700 Accounts Payable $9600 $12,900 Acts Recvble
ID: 2728016 • Letter: 2
Question
2009 2010 2009 2010
Cash $3300 $2700 Accounts Payable $9600 $12,900
Acts Recvble 8100 9600 Long-term debt 17,800 23,400
Inventory 13,500 14,800 Preferred stock 10,000 10,000
Common stock 12,000 14,000
Net Fixed Assets 46,900 47,100 Retained earnings 22,400 13,900
Total Assets 71,800 74,200 total Liabilities & Equity 71,800 74,200
Income statement, 2010
Net sales: $73,500
costs: 48,600
Depreciation $6300
EBIT 18,600
Interest 1700
Taxable Income 16,900
Taxes 5800
Net Income 11,100
No. of common shares outstanding = 10,000
Preferred dividends paid = $500
QUESTION: what is the EARNINGS PER SHARE FOR 2010?
Explanation / Answer
The data is taken from the income statement
Number of share outstanding = 10,000
Net income = $11,100
Preferred dividend = $500
Net earnings for common equity holder = Net income – preferred dividend
= $11,100 - $500
= $10,600
Earnings per share = Net income / Number of share outstanding
= $10,600 / 10,000
= $1.06
Hence, Earning per share for company is $1.06.
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