Ruby Company's Net Income Was $100,000 Last Year

question 129

Multiple Choice

Ruby Company's net income was $100,000 last year.The company has 25,000 shares of common stock and 6,000 shares of $50 par value, 6% preferred stock outstanding.There was no change in the number of common or preferred shares outstanding during the year.The earnings per share of common stock was:

• A) $9.12.
• B) $7.63.
• C) $3.28.
• D) $2.35.

---

Definitions:

Sales Taxes

Taxes imposed on sales of goods and services, usually calculated as a percentage of the sale price and collected by the retailer at the point of purchase.

TANF Benefits

Temporary Assistance for Needy Families (TANF) benefits are government aid provided to families in need to help with their living expenses.

Federal Poverty Line

A government-determined threshold based on income, used to identify individuals and households that are considered living in poverty for the purpose of eligibility for certain assistance programs.

Welfare Policies

Governmental provisions aimed at ensuring the well-being of citizens, particularly those in need, through services such as healthcare, education, and financial assistance.