Presented Below Are Selected Data from the Financial Statements of Wizard

question 184

Multiple Choice

Presented below are selected data from the financial statements of Wizard Corp. $$\begin{array} { l r r } & \underline { \mathbf { 2 0 1 8 } } & \underline { \mathbf { 2 0 1 7 } } \\\text { Net income } & \$ 150,000 & \$ 120,000 \\\text { Cash dividends paid on preferred stock } & \$ 15,000 & \$ 15,000 \\\text { Cash dividends paid on common stock } & \$ 42,000 & \$ 38,000 \\\text { Weighted average number of preferred shares outstanding } & 20,000 & 20,000 \\\text { Weighted average number of common shares outstanding } & 105,000 & 95,000\end{array}$$ Earnings per share is reported on the 2018 income statement as

• A)$1.08.
• B)$1.20.
• C)$1.29.
• D)$1.43.

---

Definitions:

Negligence

A lack of the customary caution that a reasonably prudent person would exercise in similar conditions.

Limited Partner

A limited partner is an investor in a partnership who is not involved in the day-to-day management and whose liability is limited to the amount of their investment.

Disclosed

Revealed or made known information, often in the context of legal or business proceedings.

General Partner

An owner of a partnership who has unlimited liability and is responsible for the management of the business.