Robin Company had net income of $67,000. The company had 9,000 weighted average common shares outstanding. The basic earnings per share equal $7.44 per share.

Question

Quizplus · Accepted Answer

We can calculate the basic earnings per share using the formula:

Basic earnings per share = Net Income / Weighted average number of common shares outstanding

Substituting the given values:

Basic earnings per share = $67,000 / 9,000 = $7.44

Therefore, the statement is true.

Robin Company Had Net Income of $67,000