Presented below are selected data from the financial statements of Russell Corp.for 2012 and 2011. Earnings per share is reported on the 2012 income statement as
A)$ .44.
B)$ .55.
C)$ .84.
D)$ .95.

Question

Presented below are selected data from the financial statements of Russell Corp.for 2012 and 2011.  Earnings per share is reported on the 2012 income statement as
A)$ .44. 
B)$ .55. 
C)$ .84. 
D)$ .95.

Quizplus · Accepted Answer

The earnings per share can be calculated by dividing the net income available to common shareholders by the weighted average number of common shares outstanding. From the information provided in the financial statements, we can see that the net income available to common shareholders for 2012 was $61,214,000 and the weighted average number of common shares outstanding was 72,909,000. Dividing the net income by the weighted average number of common shares, we get an earnings per share of $0.84. Therefore, the correct answer is (C) $0.84.

Presented Below Are Selected Data from the Financial Statements of Russell