A firm has the following accounts and financial data for 2014: The firm's earnings available to common shareholders for 2014 is ________.
A) -$224.25
B) $195.40
C) $302.40
D) $516.60

Question

A firm has the following accounts and financial data for 2014:  The firm's earnings available to common shareholders for 2014 is ________.
A) -$224.25 
B) $195.40 
C) $302.40 
D) $516.60

Quizplus · Accepted Answer

To calculate earnings available to common shareholders, we need to start with net income attributable to common shareholders, which is $452.40. Then we subtract preferred stock dividends (which are not available to common shareholders) of $150.00, resulting in earnings available to common shareholders of $302.40. Therefore, choice C is the correct answer.

A Firm Has the Following Accounts and Financial Data for 2014