Flyaway Travel Company Reported Net Income for 2013 in the Amount

question 139

Multiple Choice

Flyaway Travel Company reported net income for 2013 in the amount of $90,000. During 2013, Flyaway declared and paid $2,125 in cash dividends on its nonconvertible preferred stock. Flyaway also paid $10,000 cash dividends on its common stock. Flyaway had 40,000 common shares outstanding from January 1 until 10,000 new shares were sold for cash on April 1, 2013. What is 2013 basic earnings per share?

• A)$1.85.
• B)$1.64.
• C)$1.76.
• D)None of these is correct.

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Definitions:

Organizational Control

The processes and systems in place within an organization to monitor, regulate, and steer it toward its objectives.

Evaluation-Reward

Evaluation-Reward systems in organizations assess employee performance and provide rewards or consequences based on the evaluation outcomes.

Best Practices

Industry-standard methods or techniques that are widely accepted as the most effective and efficient ways to achieve a desired outcome.

Organizational Role Models

Individuals within an organization whose behaviors, attitudes, and ethical standards are emulated by others.