25. river city, inc. reported the following for 2018: net sales $220,000 net income $37,000 market price per…

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)?

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

Explanation:

Step1: Recall earnings - per - share formula

Earnings per share (EPS) = $\frac{Net\ income}{Average\ number\ of\ shares\ of\ common\ stock\ outstanding}$

Step2: Substitute given values

Net income = $37,000$, Average number of shares of common stock outstanding = 10,000 EPS=$\frac{37000}{10000}$ = 3.7

Answer:

$3.70