Question

A company reported the following data for the year ending 2018: Description | Amount Sales | $400,000 Sales discount | $16,000 Sales returns and allowances | $13,000 Cost of goods sold | $117,000 Operating expense | $153,000 Income tax expense | $23,750 There are 25,000 shares outstanding throughout the year. What is the earnings per share? a. $4.04 per share b. $3.01 per share c. $2.08 per share d. $3.09 per share

          A company reported the following data for the year ending 2018:

Description | Amount
Sales | $400,000
Sales discount | $16,000
Sales returns and allowances | $13,000
Cost of goods sold | $117,000
Operating expense | $153,000
Income tax expense | $23,750

There are 25,000 shares outstanding throughout the year. What is the earnings per share?

a. $4.04 per share
b. $3.01 per share
c. $2.08 per share
d. $3.09 per share

A company reported the following data for the year ending 2018:

Description | Amount
Sales | 400,000
Sales discount |16,000
Sales returns and allowances | 13,000
Cost of goods sold |117,000
Operating expense | 153,000
Income tax expense |23,750

There are 25,000 shares outstanding throughout the year. What is the earnings per share?

a. 4.04 per share
b.3.01 per share
c. 2.08 per share
d.3.09 per share

Added by Melissa R.

Elementary and Intermediate Algebra

Alan S. Tussy, R. David Gustafson 5th Edition

Instant Answer

Solved by Expert Kajal Gautam

01/30/2022

Step 1

Net sales is calculated as total sales minus sales discounts and sales returns and allowances. So, net sales = $400,000 - $16,000 - $13,000 = $371,000. Show more…

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A company reported the following data for the year ending 2018: Description | Amount Sales | $400,000 Sales discount | $16,000 Sales returns and allowances | $13,000 Cost of goods sold | $117,000 Operating expense | $153,000 Income tax expense | $23,750 There are 25,000 shares outstanding throughout the year. What is the earnings per share? a. $4.04 per share b. $3.01 per share c. $2.08 per share d. $3.09 per share