1.Hendrick, Inc. has the following data for the year ended December 31, 2020:

Net sales..................................................................................... $270,000

Discontinued operations loss.................................................... 20,000

Cost of goods sold........................................................................ 165,000

Interest expense............................................................................ 3,000

Selling expenses........................................................................... 15,000

Administrative expenses.............................................................. 35,000

Shares of capital stock outstanding, 10,000

Tax rate of 20% on all items

Instructions:

Calculate all required earnings per share.

On what financial statement is earnings per share reported?

Choose the correct answer:In calculating earnings per share, companies deduct preferred dividends from net income if:

a.they are noncumulative though not declared.

b.the dividends are declared.

c.they are convertible preferred shares.

d.they are callable preferred shares.