Peak Performance Sporting Goods Company continues to perform well in spite of an economic recession. Company executives credit this to the strong partnerships it enjoys with category killer and large discount chains. Last week Peak Performance reported basic EPS [earnings per share] = $.80/share. If the firm has 4,000,000 shares outstanding, net income after taxes for the same period = ______. A) $80,000 B) $5,000,000 C) $3,200,000 D) $32,000

Question

Quizplus · Accepted Answer

To find the net income after taxes, we can use the following formula:
Net Income = (Basic EPS) x (Number of Shares Outstanding)
Net Income = ($0.80/share) x (4,000,000 shares)
Net Income = $3,200,000
Therefore, the answer is C ($3,200,000).

Peak Performance Sporting Goods Company Continues to Perform Well in Spite