A Company Had Net Income of $250,000

question 178

Multiple Choice

A company had net income of $250,000.On January 1,there were 12,000 shares of common stock outstanding.On May 1,the company issued an additional 9,000 shares of common stock.The company declared a $7,900 dividend on its noncumulative,nonparticipating preferred stock.There were no other stock transactions.The company had an earnings per share of:

• A)$13.45
• B)$13.89
• C)$11.53
• D)$26.90
• E)Amount cannot be determined as problem does not state if there are any dividends in arrears

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Definitions:

Bone and Cartilage

Connective tissues in the body, where bone is hard and dense, providing structure and support, while cartilage is more flexible and cushions joints.

Lacunae

Small cavities in bone or cartilage tissue housing cells like osteocytes or chondrocytes.

Simple Squamous Epithelium

A single layer of flat cells lining surfaces where diffusion or filtration occurs, such as the alveoli in the lungs.

Alveoli

Tiny air sacs within the lungs where the exchange of oxygen and carbon dioxide between the air in the lungs and the blood in the capillaries takes place.