Shamrock Company Had Net Income of $30,000

question 147

Multiple Choice

Shamrock Company had net income of $30,000.On January 1,there were 8,000 shares of common stock outstanding.On April 1,the company issued an additional 2,000 shares of common stock.There were no other stock transactions.The company has earnings per share of:

• A)$3.75
• B)$3.00
• C)$3.33
• D)$15.00
• E)$3.16

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Definitions:

Inventory Period

The average length of time items are held in inventory before being sold.

Payables Period

The average time it takes for a business to pay its invoices and bills, reflecting the company's efficiency in managing payables.

Inventory Period

The average time a company holds inventory before selling it, directly affecting cash flow and storage costs.

Cost of Goods Sold

The direct expenses associated with manufacturing goods sold by a company.