Anjou Company had 10,000 shares of common stock outstanding at December 31, 2018 and 14,000 shares of common stock outstanding at December 31, 2019. Anjou had sales of $3,600,000 in 2019 and net income of $280,000 in 2019. What is the earnings per share amount reported for Anjou in 2019?

Question

Parker Luna

Business

2 July, 21:59

Anjou Company had 10,000 shares of common stock outstanding at December 31, 2018 and 14,000 shares of common stock outstanding at December 31, 2019. Anjou had sales of $3,600,000 in 2019 and net income of $280,000 in 2019. What is the earnings per share amount reported for Anjou in 2019?

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Answers (1)

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Tiny · Answer 1

The correct answer is $23,33 per share.

Explanation:

According to the scenario, the given data are as follows:

Net income for 2019 = $280,000

Number of shares in 2018 = 10,000

Number of shares in 2019 = 14,000

So weighted average number of shares = (10,000 + 14,000) : 2

= 12,000

So, we can calculate the earnings per share by using following formula:

Earning per share = Net income for 2019 : weighted average number of shares

By putting the value, we get

$280,000 : 12,000

= $23.33 per share