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

question 94

Multiple Choice

Company X has net sales revenue of $780,000,cost of goods sold of $343,200 and all other expenses of $327,600 for the current year.At the beginning of the year,503,000 shares of common shares were outstanding,and,at the end of the year,537,000 shares of common shares were outstanding.The basic EPS for the company is:

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

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Definitions:

Lease of Asset

A contractual agreement where the lessor allows the lessee to use an asset in exchange for periodic payments.

Bargain Purchase Option

A provision in a lease that allows the lessee to purchase the leased asset at the end of the lease term at a price significantly lower than the expected fair market value.

Economic Life

The expected period of time during which an asset remains useful to the owner for its original purpose.

Bonds Payable

Long-term liabilities representing money a company owes to bondholders, to be repaid at a future date.