Use the Table for the Question(s) Below -Refer to the Income Statement Above

question 40

Multiple Choice

Use the table for the question(s) below.
$\begin{array} { c } \text { Luther Corporation }\\ \text { Consolidated Income Statement }\\ \text { Year ended June 30 (in \$ millions) }\\\begin{array} { lll }&2012&2011\\\hline \text { Total sales } & 610.1 & 578.3 \\\hline \text { Cost of sales } & (500.2) & (481.9) \\\hline \text { Gross profit } & 109.9 & 96.4 \\\hline \text { Selling, general, and } & \\\text { administrative expenses } & (40.5) & (39.0) \\\hline \text { Research and development } & (24.6) & (22.8) \\\hline \text { Depreciation and amortisation } & (3.6) & (3.3) \\\hline \text { Operating income } & 41.2 & 31.3 \\\hline \text { Other income } & --- & -- \\\hline \text { Earnings before interest and taxes (EBIT) } & 41.2 & 31.3 \\\hline \text { Interest income (expense) } & (25.1) & (15.8) \\\hline \text { Pretax income } & 16.1 & 15.5 \\\hline \text { Taxes } & (5.5) & (5.3) \\\hline \text { Net income } & 10.6 & 10.2 \\\hline\\\hline \text { Price per share } & \$ 16 & \$ 15 \\\hline \text { Shares outstanding (millions) } & 10.2 & 8.0 \\\hline \text { Share options outstanding (millions) } & 0.3 & 0.2 \\\hline\\\hline \text { Shareholders' Equity } & 126.6 & 63.6 \\\hline \text { Total Liabilities and Shareholders' Equity } & 533.1 & 386.7 \\\hline\end{array}\end{array}$

-Refer to the income statement above. For the year ending 30 June 2012, Luther's earnings per share are closest to:

• A) $1.58
• B) $4.04
• C) $1.01
• D) $1.04

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Definitions:

Cortex

The outermost layer of the brain, responsible for higher-order brain functions such as thought, memory, and decision-making.

Parasympathetic

Part of the autonomic nervous system that conserves energy by slowing the heart rate and increasing digestive and glandular activity.

Peripheral Nervous

The peripheral nervous system is comprised of all nerves that are not part of the central nervous system, including the somatic and autonomic nervous systems, responsible for transmitting information to and from the central nervous system.

Amygdala

A brain region involved in the processing of emotions, including fear, anxiety, and aggression.