BR Trucking has total sales of $911,300, a total asset turnover of 1.1, and a profit margin of 5.87 percent.Currently, the firm has 18,500 shares outstanding.What are the earnings per share?
A)$2.92
B)$2.97
C)$2.86
D)$2.58
E)$2.89

Question

Quizplus · Accepted Answer

To find the earnings per share (EPS), first calculate the net income using the profit margin: Net Income = Total Sales * Profit Margin = $911,300 * 0.0587 = $53,487.31. Then, divide the net income by the number of shares outstanding: EPS = Net Income / Shares Outstanding = $53,487.31 / 18,500 = $2.89.

BR Trucking Has Total Sales of $911,300, a Total Asset