Question

Requirement 1h. Compute the earnings per share of common stock for 2018 and 2017. Begin by selecting the formula to compute the earnings per share of common stock.

Earnings per share

=

(Net income - Preferred dividends) / Weighted average number of common shares outstanding

​Now, compute the earnings per share for 2018 and 2017.

​(Round your answers to the nearest​ cent, $X.XX.)

2018:
2017:

Banfield, Inc.
Comparative Balance Sheet
December 31, 2018 and 2017
			2018	2017	2016*
		Assets
		Current Assets:
		Cash	$90,000	$89,000
		Accounts Receivables, Net	111,000	114,000	$105,000
		Merchandise Inventory	149,000	162,000	210,000
		Prepaid Expenses	16,000	8,000
		Total Current Assets	366,000	373,000
		Property, Plant, and Equipment, Net	220,000	173,000
		Total Assets	$586,000	$546,000	$600,000
		Liabilities
		Total Current Liabilities	$227,000	$246,000
		Long-term Liabilities	120,000	97,000
		Total Liabilities	347,000	343,000
		Stockholders' Equity
		Preferred Stock, 5%	110,000	110,000
		Common Stockholders' Equity, no par	129,000	93,000	88,000
		Total Liabilities and Stockholders' Equity	$586,000	$546,000
		* Selected 2016 amounts

Banfield, Inc.
Comparative Income Statement
Years Ended December 31, 2018 and 2017
			2018	2017
		Net Sales Revenue	$464,000	$428,000
		Cost of Goods Sold	241,000	218,000
		Gross Profit	223,000	210,000
		Operating Expenses	138,000	136,000
		Income From Operations	85,000	74,000
		Interest Expense	14,000	15,000
		Income Before Income Tax	71,000	59,000
		Income Tax Expense	20,000	26,000
		Net Income	$51,000	$33,000

Answer 1

1. Solve the earing per share as formula given below :

formula :

  earning per share = ( net income - prefered dividend ) / out standing share

A. earning per share = ( 500000 - 180000) 250000= 1.28 per share

B . earning per share = ( 850000- 90000) 200000) =3.80 per share