Assume a company provided the following information:

Net income	$	49,000
Number of common shares outstanding, beginning of the year		45,000
Number of common shares outstanding, end of the year		55,000
Market price per share	$	15
Dividends per share	$	0.50
Total assets, end of the year	$	200,000
Total liabilities, end of the year	$	80,000

The earnings per share is closest to:

Multiple Choice

• $1.28.

• $1.18.

• $1.38.

• $0.98.

• Assume a company had sales on account of $120,000 and its beginning and ending balances in accounts receivable were $12,000 and $8,000, respectively. In addition, its cost of goods sold was $96,000 and its beginning and ending inventory balances were $10,000 and $14,000, respectively. The average collection period is closest to:

  Multiple Choice

• 39.67 days.

• 42.42 days.

• 45.63 days.

• 30.42 days.