$\begin{array}{l}
\text { Manfred Mann Corporation's books revealed the following data for the current year: }\
\begin{array} { | l | r | }
\hline \text { Net earnings } & \$ 50,000 \
\hline \text { Retained earnings } & \$ 750,000 \
\hline \text { Common shares January 1 } & 25,000 \text { shares } \
\hline \text { Common shares December 31 } & 30,000 \text { shares } \
\hline
\end{array}
\end{array}$
-The earnings per share is closest to:
A) $30.50
B) $2.00
C) $1.67
D) $1.82

Question

$\begin{array}{l}
\text { Manfred Mann Corporation's books revealed the following data for the current year: }\
\begin{array} { | l | r | } 
\hline \text { Net earnings } & \$ 50,000 \
\hline \text { Retained earnings } & \$ 750,000 \
\hline \text { Common shares January 1 } & 25,000 \text { shares } \
\hline \text { Common shares December 31 } & 30,000 \text { shares } \
\hline
\end{array}
\end{array}$
-The earnings per share is closest to:
A) $30.50
B) $2.00
C) $1.67
D) $1.82

Quizplus · Accepted Answer

The earnings per share (EPS) is calculated by dividing net earnings by the average number of shares outstanding. The average number of shares is (25,000 + 30,000) / 2 = 27,500. Thus, EPS = $50,000 / 27,500 = $1.82.

-The Earnings Per Share Is Closest To: A) $30

-The Earnings Per Share Is Closest To:
A) $30