Harrison Company has common stock of $50,000 and retained earnings of $40,000 at yearend. During the year, 10,000 shares of stock were outstanding. Net income was reported as $5,000.
A. Calculate earnings per share.
B. How does earnings per share differ from most of the other ratios with respect to financial statements?

Question

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The Answer of Harrison Company has common stock of $50,000 and retained earnings of $40,000 at yearend. During the year, 10,000 shares of stock were outstanding. Net income was reported as $5,000.
A. Calculate earnings per share.
B. How does earnings per share differ from most of the other ratios with respect to financial statements?

Harrison Company Has Common Stock of $50,000 and Retained Earnings