Explanation Earnings per Share (EPS): A portion of profit that an individual earns from each share is referred to earnings per share. Formula: Earning per share = Net income − Preferred dividends Average Common Shares Outstanding Calculate the earnings per share. Earnings per share = Net income − Preferred dividends Number of common shares outstanding = $ 6 , 200 , 000 − $ 54 , 000 (1) 830 , 000 (2) = $ 7.40 Working Note: Determine the preferred dividend

Financial Accounting (12th Edition) (What's New in Accounting)

12th Edition

ISBN: 9780134725987

Author: C. William Thomas, Wendy M. Tietz, Walter T. Harrison Jr.

Publisher: PEARSON

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Chapter 12, Problem 12.35BE

To determine

To Compute: The earnings per common share for 2018.

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Chapter 12, Problem 12.34BE

Chapter 12, Problem 12.36BE

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Chapter 12 Solutions

Financial Accounting (12th Edition) (What's New in Accounting)

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The earnings per common share for 2018.

Solution Summary: The author calculates the earnings per share by calculating the number of common shares outstanding and the preferred dividend.

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To Compute: The earnings per common share for 2018.

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Chapter 12 Solutions