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Johnson Food Co. has common stock of $120,000 and retained earnings of $140,000 at the year...

Johnson Food Co. has common stock of $120,000 and retained earnings of $140,000 at the year end. During the year, the company had 20,000 shares of stock that were outstanding. Net income was reported as $80,000. What is the company’s earnings per share?

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Answer #1

Earnings Per share = Net income / Common Stock Outstanding

Net income= $ 80,000

Common stock outstanding = 20,000

Earnings Per share = 80,000 / 20,000 = $4.00 Pershare

Answer : $ 4.00 Per Share

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