Cardinal Corporation Reports Net Income for 2017 of $100,000

question 191

Multiple Choice

Cardinal Corporation reports net income for 2017 of $100,000.Cardinal Corporation had outstanding for all of 2017 10,000 shares of cumulative $5 preferred shares.On January 1,2017,Cardinal had outstanding 50,000 common shares.On October 1,2017,Cardinal Corporation issued 20,000 common shares for cash.Earnings per share is:

• A) $1.43
• B) $0.71
• C) $1.82
• D) $0.91

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Definitions:

Comparative Advantage

The ability of an individual, company, or country to produce a good or service at a lower opportunity cost than competitors.

World Economic Resources

It refers to all natural, human, and capital resources that are available globally which support economic production and development.

Net Exporter

A country that exports more goods and services than it imports, leading to a positive trade balance.