Use the following information obtained from the company's computerized accounting information system to answer the question(s)below.Note: There were no preferred shares outstanding and no additional shares were issued in 2011. Earnings per share for 2011 equals ________.

Question

Use the following information obtained from the company's computerized accounting information system to answer the question(s)below.Note: There were no preferred shares outstanding and no additional shares were issued in 2011.  Earnings per share for 2011 equals ________.

Quizplus · Accepted Answer

To calculate earnings per share for 2011, we need to divide the net income available to common shareholders by the number of common shares outstanding.

From the information given, we know that:

Net income available to common shareholders = $20,000
Number of common shares outstanding = 10,000

Therefore, earnings per share for 2011 = $20,000 / 10,000 shares = $2.00 per share.

Option C is the correct answer.

Use the Following Information Obtained from the Company's Computerized Accounting