Calculator Print Item eBook Show Me How Computing Earnings per Share The income statement, statement of retained earnings, and balance sheet for Jeanette Company are as follows: Jeanette Company Income Statement For the Year Ended December 31, 20x2 Amount Net sales $8,281,989 Less: Cost of goods sold (5,383,293) Gross margin $2,898,696 Less: Operating expenses (1,323,368) Operating income $1,575,328 Less: Interest expense (50,000) Income before taxes $1,525,328 Less: Income taxes (40%)* (610,131) Net income $915,197 Percent 100.0% 65.0 35.0 16.0 19.0 0.6 18.4 7.4 11.0 Includes both state and federal taxes. Jeanette Company Statement of Retained Earnings For the Year Ended December 31, 20x2 Balance, beginning of period $1,979,155 Check My Work 11 eBook { Show Me How Calculator Print Item Jeanette Company Statement of Retained Earnings For the Year Ended December 31, 20x2 Balance, beginning of period $1,979,155 Net income 915,197 Total $2,894,352 Preferred dividends (80,000) Dividends to common stockholders (201,887) Balance, end of period $2,612,465 Jeanette Company Comparative Balance Sheets At December 31, 20X1 and 20x2 20X1 20x2 Assets Current assets: Cash Marketable securities Accounts receivable (net) Inventories Other $2,875,000 800,000 939,776 490,000 93,000 $5,197,776 $2,580,000 700,000 690,000 260,000 74,261 $4,304,261 Total current assets Check My Work Pulit lem A December 31, 20xana 20x2 20X1 20x2 Assets Current assets: Cash $2,875,000 800,000 $2,580,000 700,000 Marketable securities Accounts receivable (net) Inventories Other 939,776 690,000 260,000 490,000 74,261 Total current assets Property and equipment: 93,000 $5,197,776 $4,304,261 Land Building and equipment (net) Total long-term assets $1,575,000 1,348,800 $2,923,800 $8,121,576 $1,067,315 1,150,000 $2,217,315 $6,521,576 Total assets Liabilities and Stockholders' Equity Current liabilities: Notes payable, short term Accounts payable Current maturity of long-term debt Accrued payables $1,170,127 298,484 3,000 200,000 $1,671,611 $ 543,641 101,500 2,000 57,780 $ 704,921 Total current liabilities Check My Work JJYLLUESSUILUCU O Pr bules eBook 4 Show Me How Calculator Print Item 298,484 101,500 Accounts payable Current maturity of long-term debt 3,000 2,000 Accrued payables 200,000 57,780 $ 704,921 $1,671,611 Total current liabilities Long-term liabilities: Bonds payable, 10% 500,000 500,000 $1,204,921 Total liabilities $2,171,611 Stockholders' equity: Preferred stock, $25 par, 8% Common stock, $0.60 par Additional paid-in capital* $1,000,000 337,500 2,000,000 2,612,465 $5,949,965 $8,121,576 $1,000,000 337,500 2,000,000 1,979,155 Retained earnings Total stockholders' equity Total liabilities and stockholders' equity $5,316,655 $6,521,576 * For common stock dnly. Required: 1. Compute the number of common shares. Round your answer to the nearest dollar shares 2. Compute earnings per share. Round your answer to the nearest cent. per share Check My Work All work saved
