Question

udy & Practice Assignment Gradebook ORION Downloadable eTextbook en Assignment SOURCES sework aded for as by Study Net soles Cost of goods sold Operating expenses Interest expense Income tax expense Current assets Plant assets (net) Current liabilities Long-term liabilities Net cash provided by operating activities Capital expenditures Dividends paid on common stock Weighted average number of shares outstanding Ayayai Corp. 2017 $2,052,000 1,339,500 322,620 10,260 96,900 504,700 606,480 75,611 123,690 157,320 102,600 41,040 80,000 Marigold Corp. 2017 $706,800 387,600 111,720 4,332 41,040 193,336 159,290 38,436 46,380 41,040 22,800 17 100 50,000 (a) Compute the net income and earnings per share for each company for 2017. (Round Earnings per share to 2 decimal places, .. $2.78.) Net Income Earnings per share Ayayai Corp. $ $ Marigold Corp $ $ (b)

Answer 1

Particulars Net Sales Less: Cost of goods sold Gross Profit Less: Operating Expenses Operating Income Less: Interest expense Income Before tax Less: Income tax expense Net Income (A) Weighted average number of shares outstanding (B) Earnings Per Share (A)/(B) Ayayai Corp. 2017 $2,052,000 $1,339,500 $712,500 $322,620 $389,880 $10,260 $379,620 $96,900 $282,720 80,000 $3.53 Marigold Corp. 2017 $706,800 $387,600 $319,200 $111,720 $207,480 $4,332 $203,148 $41,040 $162,108 50,000 $3.24 Earnings per share = Net Income after preferred dividends /Weighted average number of shares outstanding (a) Ayayai Corp. Marigold Corp. Net Income Earnings per share $282,720 $3.53 $162,108 $3.24