Question
The balance sheets at the end of each of the first two years of operations indicate the following: 2011 2010 Total current assets $600,000 $560,000
The balance sheets at the end of each of the first two years of operations indicate the following:
2011
2010
Total current assets
$600,000
$560,000
Total investments
60,000
40,000
Total property, plant, and equipment
900,000
700,000
Total current liabilities
125,000
80,000
Total long-term liabilities
350,000
250,000
Preferred 9% stock, $100 par
100,000
100,000
Common stock, $10 par
600,000
600,000
Paid-in capital in excess of par--common stock
60,000
60,000
Retained earnings
325,000
210,000
If net income is $130,000 and interest expense is $40,000 for 2011, what are the earnings per share on common stock for 2011 (rounded to two decimal places)? a. $2.17 b. $2.68 c. $2.02 d. $2.32
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Advanced Accounting
Authors: Joe Hoyle, Thomas Schaefer, Timothy Doupnik
10th edition
0-07-794127-6, 978-0-07-79412, 978-0077431808
