The Following Information Is Available for the Christian Company What Is the Earnings Per Share for the Year Ended

question 65

Multiple Choice

The following information is available for the Christian Company:
$\begin{array} { l } \text {Net income for the year ended December 31, 2014 }&\$127.4\\ \text {Retained earnings, December 31, 2014 }&150.0\\ \text {Retained earnings, December 31, 2013 }&180.0\\ \text { \( \$ 5 \) par Common stock, December 31, 2014}&80.0\\ \text {\( \$ 5 \) par Commonstock, December 31, 2013 }&80.0\\ \text {Total liabilities, December 31, 2014 }&240.0\\ \text {Total liabilities December 31,2013 }&182.0\\\end{array}$

What is the earnings per share for the year ended December 31,2014?

• A) $1.04
• B) $1.56
• C) $7.50
• D) $7.96

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Definitions:

Short-term Focus

Concentration on immediate goals or results, often at the expense of long-term objectives.

Activity-based Management

An approach to business management focusing on identifying and managing activities that drive costs and improve business processes and profitability.

Process Costing

An accounting methodology used to allocate costs to units of production in continuous or mass production processes.

Customer Value

Customer value is the perception of benefits received by a customer from a product or service compared to the costs and alternatives, often influencing purchasing decisions.