Mayan Company Had Net Income of $132,000

question 173

Multiple Choice

Mayan Company had net income of $132,000.The weighted-average common shares outstanding were 80,000.The company declared a $27,000 dividend on its noncumulative,nonparticipating preferred stock.There were no other stock transactions.The company's earnings per share is:

• A)$1.65.
• B)$1.99.
• C)$1.31.
• D)$0.34.
• E)$4.89.

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Definitions:

Revenues

The total income generated by a business or an economy from its operational activities, such as the sale of goods or services before any expenses are deducted.

Costs

Costs refer to the expenses incurred in the production of goods or services, including materials, labor, and overhead.

Marginal Product

The growth in productivity that occurs when an extra unit of input is added, with all other inputs remaining the same.

Profit

The financial benefit realized when revenue generated from business activities exceeds the expenses, costs, and taxes needed to sustain the operation.