Total Revenues and Net Income for 2008 for Smith Lake

question 84

Multiple Choice

Total revenues and net income for 2008 for Smith Lake Corporation is $3,500,000 and $280,000, respectively. Smith Lake Corporation has had 400,000 common shares of stock outstanding for all of 2008. The selling price of Smith Lake Corporation common stock on December 31, 2008, is $18. Earnings per share for 2008 is:

• A)$12.50.
• B)$0.70.
• C)$35.00.
• D)$8.75.

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Definitions:

Brainstorming

A group creativity technique designed to generate a large number of ideas for the solution of a problem.

Financial Aid

Monetary support provided to students to help cover education-related expenses.

FAFSA

The Free Application for Federal Student Aid, a form completed by current and prospective college students in the United States to determine their eligibility for student financial aid.

Taxable Income

The amount of an individual's or organization's income used to determine how much tax is owed to the government, after deductions and exemptions.