Based on the following data, what is AboveAverage\'s basic Earnings Per Share (E

Question

Based on the following data, what is AboveAverage's basic Earnings Per Share (EPS) for 2014?

AboveAverage Corporation (AAC) Balance Sheet 2014 2013 Assets Current assets:    Cash $3,916,040 $4,386,040 Marketable securities $2,525,000 $1,875,000    Accounts receivable, net 3,249,500 $3,055,500    Inventories 2,990,000 3,040,000         Total current assets 12,680,540 $12,356,540 Net Fixed assets 2,225,500 $2,000,000 Non-amortizable intangible assets 125,000 $90,000         Total assets $15,031,040 $14,446,540 Liabilities and Stockholders’ Equity Current Liabilities:    Notes Payable due within one year $1,000,000 $1,000,000    Accounts payable and accrued liabilities 2,221,000 $2,091,500    Federal income taxes payable 130,000 $300,000         Total current liabilities 3,351,000 $3,391,500 Notes payable due after one year 2,000,000 $3,000,000 Long-term bonds 1,500,000 $2,465,000 Stockholders’ equity:    Preferred stock 240,000 $240,000    Capital stock 1,000,000 $600,000    Additional paid-in capital 4,000,000 $2,400,000    Retained earnings 2,940,040 $2,350,040         Total stockholders’ equity 8,180,040 $5,590,040         Total liabilities and stockholders’ equity $15,031,040 $14,446,540

Explanation / Answer

Basic EPS = Net Income / Number of Common stock shares outstanding

= 1008000 / 1000000

= $1.008

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