How do you find earnings per share and dividends per share based off of this inf
ID: 2816863 • Letter: H
Question
How do you find earnings per share and dividends per share based off of this information:
Sales 550,000
Accumulated depreciation 190,000
Cash ?
Cost of goods sold 320,000
Accounts receivable 73,000
Depreciation expenses 38,000
Accounts payable 65,000
Interest expense 26,000
Short-term notes payable 29,000
Income taxes 59,850
Inventories 47,000
Marketing, general, and administrative expenses 45,000
Gross fixed assets 648,000
Long-Term debt 360,000
Common stock 120,000
Other assets 15,000
Retained earnings 138,500
In addition, the firm has 10,000 shares outstanding and paid $15,000 in common stock dividends during the year.
This is the income statement that I have started to fill out but I do not know how to find earnings per share and dividends per share. Please explain how you got earnings per share and dividends per share as simple as you can but in a way I can understand please:
Income Statement
Sales $550,000
Cost of goods sold 320000
Gross profits $230000
Marketing, general and administrative expenses $45000
Depreciation expenses 38000
Total operating expenses $83000
Operating income (EBIT) $147000
Interest expense 26000
Earnings before taxes $121000
Income taxes 59850
Net income $61150
Number of common shares outstanding 10000
Earnings per share $
Dividends paid to stockholders $
Dividends per share $
Explanation / Answer
10,000 shares outstanding and paid $15,000 in common stock dividends
Net income $61150
Earnings per Share = Net Income/No of Shares = 61150/10,000 = 6.1150
Dividends per Share = Dividends/No of Shares = 15,000/10,000 = 1.5
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