(A) is wrong, can someone help me? The net income reported on the income statement of Cutler Co. was $4,000,000. There were 500,000 shares of $10 par common stock and 100,000 shares of$2 preferred stock outstanding throughout the current year. The income statement included a gain on discontinued operations of $400,000 after applicableincome tax.a. Determine the per-share figure for common stock for income before discontinued operations. Round your answer to the nearest whole cent.$ 3,600,00 X per shareb. Determine the per-share figure for common stock for net income. Round your answer to the nearest whole cent.7.60per shareFeedbackCheck My Worka. Calculate income before extraordinary items by working backwards. Subtract the gain from discontinued operations from net income. Divide income beforeextraordinary items minus preferred dividends (100,000 shares x $2 dividend per share) by common shares outstanding.b. Divide net income minus preferred dividends (100,000 shares x $2 dividend per share) by common shares outstanding.

We know that earnings per share is a financial measure that describes income that is generated by…

Answered: = per-share figure

Business

Accounting

= per-share figure

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Market Efficiency

Market efficiency refers to the market's ability to provide investors with all available information about investment options for buying and selling securities. Market efficiency reflects the true value of securities without undervaluing or overvaluing them. When the quality and quantity of information increase, the market becomes more efficient, allowing it to reduce arbitrage and obtain higher market returns from investment. In a well-functioning market, everyone receives all information completely and immediately at no cost. It opens up a plethora of opportunities for investors to access various investment options.

Question

(A) is wrong, can someone help me?

The net income reported on the income statement of Cutler Co. was $4,000,000. There were 500,000 shares of $10 par common stock and 100,000 shares of
$2 preferred stock outstanding throughout the current year. The income statement included a gain on discontinued operations of $400,000 after applicable
income tax.
a. Determine the per-share figure for common stock for income before discontinued operations. Round your answer to the nearest whole cent.
$ 3,600,00 X per share
b. Determine the per-share figure for common stock for net income. Round your answer to the nearest whole cent.
7.60
per share
Feedback
Check My Work
a. Calculate income before extraordinary items by working backwards. Subtract the gain from discontinued operations from net income. Divide income before
extraordinary items minus preferred dividends (100,000 shares x $2 dividend per share) by common shares outstanding.
b. Divide net income minus preferred dividends (100,000 shares x $2 dividend per share) by common shares outstanding.

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