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

MyLab Accounting with Pearson eText -- Access Card -- for Financial Accounting

12th Edition

ISBN: 9780134727677

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

Publisher: PEARSON

See similar textbooks

Concept explainers

Reporting Cash Flows

Reporting of cash flows means a statement of cash flow which is a financial statement. A cash flow statement is prepared by gathering all the data regarding inflows and outflows of a company. The cash flow statement includes cash inflows and outflows fro…

Balance Sheet

A balance sheet is an integral part of the set of financial statements of an organization that reports the assets, liabilities, equity (shareholding) capital, other short and long-term debts, along with other related items. A balance sheet is one of the …

Financial Statements

Financial statements are written records of an organization which provide a true and real picture of business activities. It shows the financial position and the operating performance of the company. It is prepared at the end of every financial cycle. It…

Owner's Capital

Before we begin to understand what Owner’s capital is and what Equity financing is to an organization, it is important to understand some basic accounting terminologies. A double-entry bookkeeping system Normal account balances are those which are expect…

Videos

Question

Chapter 12, Problem 12.35BE

To determine

To Compute: The earnings per common share for 2018.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Chapter 12, Problem 12.34BE

Chapter 12, Problem 12.36BE

Students have asked these similar questions

I am looking for a step-by-step explanation of this financial accounting problem with correct standards.

I need help with this financial accounting question using accurate methods and procedures.

At the beginning of the year, Quasar Systems had liabilities of $92,000. During the year, assets increased by $68,000, and at year-end, assets totaled $225,000. Liabilities decreased by $17,000 during the year. What are the beginning and ending amounts of equity for Quasar Systems?

Chapter 12 Solutions

MyLab Accounting with Pearson eText -- Access Card -- for Financial Accounting

Ch. 12 - Prob. 1QC Ch. 12 - Prob. 2QC Ch. 12 - Prob. 3QC Ch. 12 - Prob. 4QC Ch. 12 - Expressing accounts receivable as a percentage of...Ch. 12 - Kincaid Company reported the following data (in...Ch. 12 - Prob. 7QC Ch. 12 - Ratios that measure liquidity include all of the...Ch. 12 - Verba Corporation has an inventory turnover of 15...Ch. 12 - The measure of a companys ability to collect cash...

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

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.

Concept explainers

Videos

To Compute: The earnings per common share for 2018.

Want to see the full answer?

Chapter 12 Solutions