The balance sheets at the end of each of the first two years of operations indicate the following: 2012 2011Total current assets $600,000 $560,000Total investments 60,000 40,000Total property, plant, and equipment 900,000 700,000Total current liabilities 125,000 65,000Total long-term liabilities 350,000 250,000Preferred 9% stock, $100 par 100,000 100,000Common stock, $10 par 600,000 600,000Paid-in capital in excess of par-common stock 75,000 75,000Retained earnings 310,000 210,000If 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 $1.92 $1.77 $1.64
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The
balance sheets at the end of each of the first two years of operations indicate the following:
2012 2011
Total current assets $600,000 $560,000
Total investments 60,000 40,000
Total property, plant, and equipment 900,000 700,000
Total current liabilities 125,000 65,000
Total long-term liabilities 350,000 250,000
Preferred 9% stock, $100 par 100,000 100,000
Common stock, $10 par 600,000 600,000
Paid-in capital in excess of par-common stock 75,000 75,000
Retained earnings 310,000 210,000
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
$1.92
$1.77
$1.64
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