Net income (in millions)	$175
Preferred stock dividends (in millions)	$25
Common shares outstanding (in millions)	250
Stock price	$10.00

111) What is earnings per share?

A) $0.60. B) $0.70. C) $0.50. D) $0.05.

112. ABC purchased a piece of equipment by paying $5,000 cash. They also incurred a shipping cost of

$400 to get the equipment to its factory. The fair value of this equipment is $7,000. For what amount should ABC record the equipment?

A) $7,000. B) $7,400. C) $5,000. D) $5,400.

113. ABC reports sales of $100 million. Accounts receivable at the beginning and end of the year are $6 million and $9 million, respectively. What is the amount of cash received from customers?
     1. $100 million. B) $109 million. C) $97 million. D) $103 million.

114. Earnings per share (EPS)
     1. Is useful in comparing earnings performance across companies.
     2. Is not useful in comparing earnings performance across companies or in comparing earnings performance for the same company over time.
     3. Is useful in comparing earnings performance for the same company over time.
     4. Is useful in both comparing earnings performance across companies and in comparing earnings performance for the same company over time.

115. A contingent gain can sometimes be disclosed in a footnote
     1. True B) False