For 2014 Kuhlman Corporation reported net income of $28,000; net sales $400,000; and average share outstanding 16,000. There were no preferred dividends. What was the 2014 earnings per share?
A) $1.75
B) $0.57
C) $25.00
D) $0.07

Question

Quizplus · Accepted Answer

Earnings per share (EPS) is calculated by dividing net income by the average number of shares outstanding. For Kuhlman Corporation, EPS = $28,000 / 16,000 = $1.75.

For 2014 Kuhlman Corporation Reported Net Income of $28,000; Net