Income Statement for Xenon Manufacturing: Consider the Above Income

question 46

Multiple Choice

Income Statement for Xenon Manufacturing: Consider the above Income Statement for Xenon Manufacturing. All values are in millions of dollars. If Xenon Manufacturing has 20 million shares outstanding, what is its EPS in 2008?

• A)$0.50
• B)$0.25
• C)$0.40
• D)$0.60

---

Definitions:

Cash Basis

An accounting method where revenues and expenses are recognized when cash is received or paid, rather than when earned or incurred.

Indirect Method

A way of presenting the cash flow statement where net income is adjusted for the effects of transactions that do not involve cash.

Exchange

is a marketplace where securities, commodities, derivatives, or other financial instruments are traded.

Treasury Stock

Treasury stock refers to previously issued shares that have been repurchased by the issuing company, reducing the amount of outstanding stock on the open market.