Question

The 2017 income statement of pronghorn corporation showed net income of 468000 and a loss from discontinued operations of 116000. Pronghorn had 100000 shares of common stock oustanding all year. Prepare income statement presentation of earnings per share.

Answer 1

Income statement presentation of earnings per share is given below.

Net income $ 468,000

Discontinued operations ($ 116,000)

Group Net income $ 352,000

EPS $ 3.52

DPS $ 3.52

Earning per share is an accounting ratio that is widely used by investors in stock market. The EPS is calculated as follow.

EPS = Net income/outstanding shares = 352,000/100,000 = $ 3.52