Earnings per share: O a. will decrease if net income decreases and the number of treasury shares increases. b. will decrease if net income decreases and the number of shares outstanding increases. O c. is the total amount of dividends paid per year on a per share basis. O d. will increase if net income increases and the number of shares outstanding increases. O e. is defined as the addition to retained earnings divided by the number of shares outstanding.
Earnings per share: O a. will decrease if net income decreases and the number of treasury shares increases. b. will decrease if net income decreases and the number of shares outstanding increases. O c. is the total amount of dividends paid per year on a per share basis. O d. will increase if net income increases and the number of shares outstanding increases. O e. is defined as the addition to retained earnings divided by the number of shares outstanding.
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter10: Stockholder's Equity
Section: Chapter Questions
Problem 16MCQ
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Transcribed Image Text:Earnings per share:
O a. will decrease if net income decreases and the number of treasury shares increases.
O b. will decrease if net income decreases and the number of shares outstanding increases.
c. is the total amount of dividends paid per year on a per share basis.
o d. will increase if net income increases and the number of shares outstanding increases.
O e. is defined as the addition to retained earnings divided by the number of shares outstanding.

Transcribed Image Text:XYZ has sales of $312,80o, cost of goods sold of $218,400, inventory of $46,30o, and accounts receivable
days
of $62,700. The average days that it takes the firm to sell its inventory is
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