Earnings per Share Ratio Earnings per Share (EPS) Net Income Weighted Average Number of Common Shares Outstanding Prior Year Current Year Net income $300,000 $400,000 Weighted average number shares outstanding 25.000 25,000 Prior year: Current year: $300,000 EPS = 25,000 = $12.00 per share $400,000 EPS = 25,000 = $16.00 per share os Knowledge Check 01 The charter of Carrington Company authorized 10,000 shares of common stock, but did not authorize any shares of preferred stock. There were 9,500 shares of common stock issued and outstanding throughout the year. During the year, the company reported net income of $30,000. What is the company's earnings per share? (Round your answer to 2 decimal places.) Earnings per share per share