Question

25. River City, Inc. reported the following for 2018:

Net sales $220,000
Net income $37,000
Market price per share of common stock $28.75
Dividends $4,100
Average number of shares of common stock
outstanding 10,000
What are the earnings per share for River City, Inc. (to the nearest cent)?

Answer 1

$3.70 per share

Explanation:

To find earnings per share, divide earnings by shares:

income/shares = ($37,000)/(10,000 shares) = $3.70 per share