In 2017, moreno cheeses had a net income of $42,390, paid preferred dividends of $6,000, and had 18,000 shares of common stock outstanding. what was their earnings per share for 2017?

To answer the question above, we subtract the preferred dividends from the net income. That is,

$42,390 - $6,000 = $36,390

Then, to determine the earnings per share, we simply divide the obtained value above by the number of shares. That is,

$36,390 / 18,000 = $2.02