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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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