Using the following balance sheet and income statement data, what is the earnings per share? $$\begin{array} { l r l r }
\text { Current assets } & \$ 21,000 & \text { Net income } & \$ 45,000 \
\text { Current liabilities } & 12,000 & \text { Stockholders' equity } & 63,000 \
\text { Average assets } & 132,000 & \text { Total liabilities } & 27,000 \
\text { Total assets } & 90,000 & &
\end{array}$$ Average common shares outstanding was 15,000.
A)$3.00
B)$4.20
C)$0.33
D)$0.50

Question

Using the following balance sheet and income statement data, what is the earnings per share? $$\begin{array} { l r l r } 
\text { Current assets } & \$ 21,000 & \text { Net income } & \$ 45,000 \
\text { Current liabilities } & 12,000 & \text { Stockholders' equity } & 63,000 \
\text { Average assets } & 132,000 & \text { Total liabilities } & 27,000 \
\text { Total assets } & 90,000 & &
\end{array}$$ Average common shares outstanding was 15,000.
A)$3.00
B)$4.20
C)$0.33
D)$0.50

Quizplus · Accepted Answer

Earnings per share (EPS) is calculated by dividing net income by the average number of common shares outstanding. EPS = $45,000 / 15,000 = $3.00.

Using the Following Balance Sheet and Income Statement Data, What