The Balance Sheets at the End of Each of the First

question 72

Multiple Choice

The balance sheets at the end of each of the first two years of operations indicate the following: $\begin{array}{lrr}&2017&2018\\\text { Total current assets } & \$ 600,000 & \$ 560,000 \\\text { Total investments } & 60,000 & 40,000 \\\text { Total property, plant, and equipment } & 900,000 & 700,000 \\\text { Total current liabilities } & 125,000 & 80,000\\\text { Total long-term liabilities } & 350,000 & 250,000 \\\text { Preferred } 9 \% \text { stock, } \$ 100 \text { par } & 100,000 & 100,000 \\\text { Common stock, } \$ 10 \text { par } & 600,000 & 600,000 \\\text { Paid-in capital in excess of par-common stock } & 60,000 & 60,000 \\\text { Retained earnings } & 325,000 & 210,000\end{array}$ ? Based on the above information, if net income is $130,000 and interest expense is $40,000 for 2017, what are the earnings per share on common stock for 2017 (round to two decimal places) ?

• A) $2.17
• B) $2.32
• C) $2.68
• D) $2.02

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Definitions:

Particular Object

A specific item or entity that is singled out or distinguished from others in its group or category.

Phobias

Extreme or irrational fears of specific objects, situations, or activities, often leading to avoidance behavior.

Evolution

The process by which different kinds of living organisms are thought to have developed and diversified from earlier forms during the history of the earth.

Obsession

An obsession is a persistent, intrusive, and unwanted thought, urge, or image that causes significant anxiety or distress, often seen in disorders like obsessive-compulsive disorder (OCD).