The balance sheets at the end of each of the first two years of operations indicate the following: 2011 $560,000 40,000 2012 $600,000 60,000 900,000 125,000 350,000 100,000 600,000 75,000 310,000 Total current assets Total investments Total property, plant, and equipment Total current liabilities 700,000 65,000 250,000 100,000 600,000 75,000 Total long-term liabilities Preferred 9% stock, $100 par Common stock, $10 par Paid-in capital in excess of par-common stock Retained earnings 210,000 44. If net income is $115,000 and interest expense is $30,000 for 2012, what are the earnings per share on common stock for 2012, (round to two decimal places)? $2.07 b. $1.92 a. c. $1.77 d. $1.64 OBJ: LO: 17-03 Moderate ANS: C PTS: 1 DIF: KEY: Bloom's: Knowledge NAT: BUSPROG: Analytic
The balance sheets at the end of each of the first two years of operations indicate the following: 2011 $560,000 40,000 2012 $600,000 60,000 900,000 125,000 350,000 100,000 600,000 75,000 310,000 Total current assets Total investments Total property, plant, and equipment Total current liabilities 700,000 65,000 250,000 100,000 600,000 75,000 Total long-term liabilities Preferred 9% stock, $100 par Common stock, $10 par Paid-in capital in excess of par-common stock Retained earnings 210,000 44. If net income is $115,000 and interest expense is $30,000 for 2012, what are the earnings per share on common stock for 2012, (round to two decimal places)? $2.07 b. $1.92 a. c. $1.77 d. $1.64 OBJ: LO: 17-03 Moderate ANS: C PTS: 1 DIF: KEY: Bloom's: Knowledge NAT: BUSPROG: Analytic
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:The balance sheets at the end of each of the first two years of operations indicate the following:
2011
$560,000
40,000
2012
$600,000
60,000
900,000
125,000
350,000
100,000
600,000
75,000
310,000
Total current assets
Total investments
Total property, plant, and equipment
Total current liabilities
700,000
65,000
250,000
100,000
600,000
75,000
Total long-term liabilities
Preferred 9% stock, $100 par
Common stock, $10 par
Paid-in capital in excess of par-common stock
Retained earnings
210,000
Transcribed Image Text:44. If net income is $115,000 and interest expense is $30,000 for 2012, what are the earnings per share
on common stock for 2012, (round to two decimal places)?
$2.07
b. $1.92
a.
c. $1.77
d. $1.64
OBJ: LO: 17-03
Moderate
ANS: C
PTS: 1
DIF:
KEY: Bloom's: Knowledge
NAT: BUSPROG: Analytic
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