8-10

Companies report the cost of stock options in the: Statement of cash flows. Balance sheet. Statement of retained earnings. Income statement. No disclosure is required. Corporations may buy back their own stock of any of the following reasons except to: Avoid a hostile take over. Have shares available for a merger or acquisition. Have shares available for employee compensation. Maintain market value for the company stock. Allow management to assume the voting rights. Mayan Company had net income of $132,000. The weighted-average common shares outstanding were 80,000. The company declared a $27,000 dividend on its noncumulative, nonparticipating preferred stock. There were no other stock transactions. The company's earnings per share is: $1.65 $1.99. $1.31. $0.34. $4.89