Using the Following Balance Sheet and Income Statement Data, What

question 161

Multiple Choice

Using the following balance sheet and income statement data, what is the earnings per share? $\begin{array}{lrlr}\text { Current assets } & \$ 7,000 & \text { Net income } & \$ 15,000 \\\text { Current liabilities } & 4,000 & \text { Stockholders' equity } & 21,000 \\\text { Average assets } & 44,000 & \text { Total liabilities } & 9,000\\\text { Total assets } \quad 30,000\end{array}$ Average common shares outstanding was 10,000.

• A) $1.50
• B) $2.50
• C) $0.67
• D) $0.55

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Definitions:

Opportunity Cost

The cost of forgoing the next best alternative when making a decision, used in evaluating the trade-offs in economics.

Carbon Dioxide Emissions

The release of CO2 into the atmosphere, primarily from burning fossil fuels, which is a major contributor to climate change.

Economic Growth

An increase in the amount of goods and services produced per head of the population over a period of time, often measured as the rate of increase in the gross domestic product (GDP).

Regulatory Approach

Strategies and actions taken by government or organizations to control or direct activities, often through rules and regulations.