At January 1, 2014, Foxmore Company Had 80,000 Shares of Common

question 41

Multiple Choice

At January 1, 2014, Foxmore Company had 80,000 shares of common stock outstanding and no preferred stock. During the year, they issued 40,000 additional shares of common stock. At December 31, 2014, Foxmore had 120,000 shares of common stock outstanding, and no preferred stock. In addition, Foxmore reported the following results for the year 2014:
$\begin{array}{|l|r|}\hline\text { Sales revenues from regular business operations } & \$ 3,000,000 \\\hline \text { Cost of goods sold } & 900,000 \\\hline \text { Operating expenses from their regular business operations } & 600,000 \\\hline \text { Gain on disposal of several items of property, plant \& equipment } & 15,000 \\\hline \text { Income tax expense on continuing operations } & 330,000 \\\hline \text { Loss on the termination of a discontinued business segment, net of } \\\text { Lax }&120,000\\\hline\text { Losses on damage caused by earthquake, net of tax }&280,000\\\hline\end{array}$
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At December 31, 2014, how much is the earnings per share for total net income (loss) ?
(Please round all calculations to the nearest cent.)

• A) $(1.20)
• B) $7.85
• C) $10.65
• D) $(2.80)

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Definitions:

Confidence Interval

A spectrum of statistical indicators, sourced from a sample, predicted to involve the secret value of a population parameter.

Normal Distribution

A bell-shaped probability distribution that is symmetric about the mean, showing that data near the mean are more frequent in occurrence than data far from the mean.

Confidence Interval

A selection of statistics, from analyzing samples, anticipated to house the covertly valued population parameter.

Standard Deviation

A statistic that denotes the dispersion or variability of a dataset relative to its mean, indicating how spread out the data points are.