The Following Information Pertains to Barnum Company: Balance Sheet $31,20 \mathrm{X} 2$

question 72

Multiple Choice

The following information pertains to Barnum Company: Balance Sheet
At December $31,20 \mathrm{X} 2$
$\begin{array}{lrlr}\text { Current assets } & \$ 18,700 & \text { Current liabilities } & \$ 7,600 \\\text { Long-term assets } & 29,700 & \text { Long-term liabilities } & 13,250\\&&\text { Stockholders' equity }&27,550\\\text { Total assets }&\$ 48,400& \text { Total assets }&\$ 48,400 \end{array}$

Barnum Company
Income Statement
For the Year Ended December $31,20 \mathrm{X} 2$
$\begin{array}{lr}\text { Sales } & \$ 106,950 \\\text { Less: Cost of goods sold } & \underline{61,800) } \\\text { Gross profit } & \$ 45,150 \\\text { Less: Operating expenses } & \underline{31,700} \\\text { Operating income } & \$ 13,450 \\\text { Less other expenses: interest } & \underline{1,300) } \\\text { Income before taxes } & \$ 12,150 \\\text { Less: Income tax expense } & \underline{4,850) } \\\text { Net income } & \$ 7,300\end{array}$ There were 1,000 shares of common stock outstanding with a market value of $75 as of December 31, 20X2.Dividends declared and paid was $5 per share.The earnings per share for 20X2 is _____.

• A)$106.95
• B)$0.26
• C)$3.88
• D)$7.30

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Definitions:

Ethical Principle

Fundamental guidelines or rules that help dictate right from wrong and guide moral conduct within various contexts.

Psychology Experiments

Research methods used in psychology to study behavior and mental processes through controlled conditions and variables.

Human Participants

Individuals who take part in research studies or experiments, contributing data through their actions or responses.

Normal Distribution

A bell-shaped curve that represents the distribution of many types of data where most values cluster around the mean.