Presented below are selected data from the financial statements of Wizard Corp. Earnings per share is reported on the 2012 income statement as
A)$1.08
B)$1.20
C)$1.29
D)$1.43

Question

Presented below are selected data from the financial statements of Wizard Corp.  Earnings per share is reported on the 2012 income statement as
A)$1.08 
B)$1.20 
C)$1.29 
D)$1.43

Quizplus · Accepted Answer

The earnings per share is calculated by dividing the net income available to common shareholders by the average number of common shares outstanding during the year. Based on the given data, the net income available to common shareholders is $133,690,000 and the average number of common shares outstanding is 103,902,000. Therefore, earnings per share = $133,690,000 ÷ 103,902,000 = $1.29. The correct answer is C.

Presented Below Are Selected Data from the Financial Statements of Wizard