Question

Cami's floating casino achieved an earnings per share of $12 last accounting period. If her firm has 1,500 shareholders and 6,000 shares of common stock outstanding, how much net income did the firm earn last

period?

Answer 1

To calculate the net income for Cami's casino, you multiply the earnings per share ($12) by the total number of shares oustanding (6,000), resulting in a net income of $72,000 for the last accounting period.

Step-by-step explanation:

The student is asking how to calculate the net income for a firm based on its earnings per share (EPS) and the number of shares outstanding. To find the net income for Cami's floating casino, we multiply the EPS by the number of shares outstanding. Since the EPS is $12 and there are 6,000 shares outstanding, the calculation is as follows:

Net Income = Earnings Per Share × Number of Shares Outstanding

Net Income = $12 × 6,000

Net Income = $72,000

Thus, the casino's net income for the last accounting period was $72,000.