Question

Financial statement data for the year ending December 31 for Langford Company is shown below: Net income $450,000 Preferred dividends 50,000 Average number of common shares outstanding 80,000 shares What is earnings per share for the year

Answer 1

earnings per share = $ 5

Step-by-step explanation:

given data

Net income = $450,000

Preferred dividends = 50,000

shares outstanding = 80,000 shares

to find out

What is earnings per share for the year

solution

we get earnings per share is express as

earnings per share = ( net income - Preferred dividends ) ÷ shares outstanding ..................1

put here value we get

earnings per share =
`(450,000 - 50,000)/(80000)`

earnings per share = $5