Refer to the information from the financial statements of Topaz Corp.for Year 2 and Year 1. Earnings per share is reported on the Year 2 income statement as:

A) $ 0.32.
B) $ 0.40.
C) $1.50.
D) $1.80.

Question

Refer to the information from the financial statements of Topaz Corp.for Year 2 and Year 1. Earnings per share is reported on the Year 2 income statement as:

A) $ 0.32. 
B) $ 0.40. 
C) $1.50. 
D) $1.80.

Quizplus · Accepted Answer

Earnings per Share (EPS) = (Net Income - Preferred Dividends) / Average Common Shares
EPS = ($200,000 - $20,000) / 120,000 = $1.50

Refer to the Information from the Financial Statements of Topaz