The Middleton Company Reports the Following Information What Is the Earnings Per Share for the Year Ended

question 111

Multiple Choice

The Middleton Company reports the following information:
$$\begin{array} { l l } \text { Sales for the year ended December 31, 2012 } & \$ 106,950 \\\text { Grom profit for the year ended December } 31,2012 & \$ 45,150 \\\text { Net income for the year ended December } 31,2012 & \$ 7,300 \\\text { Total Current Assets, December } 31,2012 & \$ 18,700 \\\text { Total Current Liabilities, December } 31,2012 & \$ 7,600 \\\text { Total Assets, December } 31,2012 & \$ 48,400 \\\text { Total Liabilities, December } 31,2012 & \$ 20,850 \\\text { Average common shares outstanding in } 2012 & 1,000 \\\text { Market price per share, December } 31,2012 & \$ 75,00 \\\text { Dividends per share, for the year ended December } 31,2012 & \$ 5.00\end{array}$$
What is the earnings per share for the year ended December 31,2012?

• A) $0.26
• B) $3.88
• C) $7.30
• D) $106.95

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Definitions:

Implied Title

A legal concept indicating that ownership is suggested or inferred through actions or circumstances rather than explicitly conveyed via a formal document.

Passing of Title

The act of transferring the ownership of property from one person or entity to another.

Real Property

Land and everything permanently attached to it.

Lease Contracts

Agreements in which one party grants another the use of property, equipment, or premises for a specified period in exchange for rental payments.