**Basic Earnings Per Share Calculation**Murray Company reports a net income of $851,000 for the year. It has no preferred stock, and its weighted-average common shares outstanding is 370,000 shares.Compute its basic earnings per share.**Table Explanation:**The table is used to compute Basic Earnings Per Share (EPS).- **Choose Numerator:** - The numerator is the net income, which is $851,000.- **Choose Denominator:** - The denominator is the weighted-average common shares outstanding, which is 370,000 shares.**Formulation:**The Basic EPS is calculated as follows:\[ \text{Basic EPS} = \frac{\text{Net Income}}{\text{Weighted-Average Shares Outstanding}} \]\[ \text{Basic EPS} = \frac{851,000}{370,000} \]The calculation will provide the Basic EPS per share.

Earnings per share shown the per share amount earned by each common stockholders from the profits of…

Murray Company reports net income of $851,000 for the year. It has no preferred stock, and its weighted-average common shares outstanding is 370,000 shares. Compute its basic earnings per share. Choose Numerator: Basic Earnings Per Share T 1 Choose Denominator: = Basic EPS Basic EPS per share

Murray Company reports net income of $851,000 for the year. It has no preferred stock, and its weighted-average common shares outstanding is 370,000 shares. Compute its basic earnings per share. Choose Numerator: Basic Earnings Per Share T 1 Choose Denominator: = Basic EPS Basic EPS per share

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Question

**Basic Earnings Per Share Calculation**

Murray Company reports a net income of $851,000 for the year. It has no preferred stock, and its weighted-average common shares outstanding is 370,000 shares.

Compute its basic earnings per share.

**Table Explanation:**

The table is used to compute Basic Earnings Per Share (EPS).

- **Choose Numerator:**
- The numerator is the net income, which is $851,000.

- **Choose Denominator:**
- The denominator is the weighted-average common shares outstanding, which is 370,000 shares.

**Formulation:**

The Basic EPS is calculated as follows:

\[ \text{Basic EPS} = \frac{\text{Net Income}}{\text{Weighted-Average Shares Outstanding}} \]

\[ \text{Basic EPS} = \frac{851,000}{370,000} \]

The calculation will provide the Basic EPS per share.

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