For 2014 Kuhlman Corporation Reported Net Income of $28,000; Net

question 101

Multiple Choice

For 2014 Kuhlman Corporation reported net income of $28,000; net sales $400,000; and average share outstanding 16,000. There were no preferred dividends. What was the 2014 earnings per share?

• A) $1.75
• B) $0.57
• C) $25.00
• D) $0.07

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Definitions:

Gross Earnings

Gross Earnings are the total amount earned by an individual or entity before any deductions such as taxes, benefits, and other payroll deductions.

Total Compensation

The complete package of salary, benefits, bonuses, and any other financial rewards provided to an employee.

Contingent Liability

Contingent liability is a potential financial obligation that may arise in the future, dependent on the outcome of a specific event.

Financial Statements

Structured reports that convey the financial activities and condition of a business or individual, including balance sheets, income statements, and statements of cash flows.