Write the equation which you can use to calculate earnings per share, then (b) calculate the ratio using the following numbers.

No	Items	$ Amount
1	Income before tax	100,000
2	Income after tax	80, 000
3	Net income	120, 000
4	Preferred dividends	30, 000
5	Stock dividends	20, 000
6	Weighted average dividends	15, 000
7	Average number of shares	50, 000
8	Weighted average number of shares	90, 000
9	Weighted average number of shares outstanding	6
10	Weighted average number of shares sold	70, 000