Vesuvius Company Has Net Sales Revenue of $780,000,cost of Goods

question 145

Multiple Choice

Vesuvius Company has net sales revenue of $780,000,cost of goods sold of $343,200,net income of $119,200,and preferred dividends of $10,000 during the current year.At the beginning of the year,503,000 shares of common stock were outstanding,and,at the end of the year,537,000 shares of common stock were outstanding.A total of 1,000 preferred shares were outstanding throughout the year.The company's earnings per share for the current year is closest to:

• A) $1.50.
• B) $0.84.
• C) $0.21.
• D) $0.87.

---

Definitions:

Interacting Subsystems

Components within a larger system that affect each other's functioning through their interconnection and flow of information.

Production Function

An economic model that describes the relationship between input resources and the output of goods or services that result from those inputs.

Managerial Subsystem

A component of an organization that focuses on administrative and decision-making functions, essential for directing the organization towards its goals.

Traditional Organizational Theory

An approach to organizational management that emphasizes hierarchy, fixed duties, and a top-down flow of information and orders.