$\begin{array}{l}
\text { Time Corporation reported the following for } 20X 1 \text { : }\
\begin{array} { | l | r | }
\hline \text { Share Capital } & 5,000 \text { shares outstanding } \
\hline \text { Revenues } & \$ 100,000 \
\hline \text { Expenses } & \$ 95,000 \
\hline
\end{array}
\end{array}$
-What was the amount of earnings per share?
A) $1.00.
B) $2.00.
C) $19.00.
D) $20.00.

Question

$\begin{array}{l}
\text { Time Corporation reported the following for } 20X 1 \text { : }\
\begin{array} { | l | r | } 
\hline \text { Share Capital } & 5,000 \text { shares outstanding } \
\hline \text { Revenues } & \$ 100,000 \
\hline \text { Expenses } & \$ 95,000 \
\hline
\end{array}
\end{array}$
-What was the amount of earnings per share?
A) $1.00.
B) $2.00.
C) $19.00.
D) $20.00.

Quizplus · Accepted Answer

Earnings per share (EPS) is calculated by dividing the net income by the number of shares outstanding. Here, net income = Revenues - Expenses = $100,000 - $95,000 = $5,000. With 5,000 shares outstanding, EPS = $5,000 / 5,000 shares = $1.00.

-What Was the Amount of Earnings Per Share? A) $1

-What Was the Amount of Earnings Per Share?
A) $1