The Balance Sheets at the End of Each of the First

question 60

Multiple Choice

The balance sheets at the end of each of the first two years of operations indicate the following: $\begin{array}{|l|l|l|}\hline2012&2013\\\hline\$ 560,000 & \$ 600,000 & \text { Total current assets } \\\hline 40,000 & 60,000 & \text { Total investments } \\\hline 700,000 & 900,000 & \text { Total property, plant, and ecuipment } \\\hline 80,000 & 125,000 & \text { Total current liabilities } \\\hline 250,000 & 350,000 & \text { Total long-term liabilities } \\\hline 100,000 & 100,000 & \text { Preferred } 9 \% \text { stock } \$ 100 \mathrm{prr} \\\hline 600,000 & 600,000 & \text { Common stock, } \$ 10 \text { prr } \\\hline 60,000 & 60,000 & \text { Paid-in capital in excess of par--common stock } \\\hline 210,000 & 325,000 & \text { Retained earnings }\\\hline\end{array}$

Based on the above information, if net income is $130,000 and interest expense is $40,000 for 2013, what are the earnings per share on common stock for 2013 (round to two decimal places) ?

• A) $2.17
• B) $2.68
• C) $2.02
• D) $2.32

---

Definitions:

Appraisal Theory

A theory in psychology that suggests emotions are derived from an individual's evaluation (appraisal) of a situation in terms of how it impacts their well-being.

Theories of Emotion

Encompass various psychological theories explaining how human emotions are generated, including the roles of physiological arousal, cognitive processes, and environmental stimuli.

Somatic

Relating to or affecting the body as distinguished from the mind or spirit.

Stress

The body's response to any demand or challenge, which can be physical, mental, or emotional.