Question

Rye Company has provided the following information: Weighted average number of outstanding common shares, 196,000 Net income, $470,400 Number of authorized common shares, 395,000 Number of treasury shares, 24,000 If Rye has issued 220,000 shares, what is Rye's earnings per share (EPS)

Answer 1

Answer:

Rye's earnings per share = $2.41 per share (Approx.)

Explanation:

Given:

Number of Average outstanding common share = 196,000

Net income =$470,400

Number of authorized common share = 395,000

Number of treasury shares = 24,000

Number of issued shares 220,000

Find:

Rye's earnings per share

Computation:

Earnings per share  = Net income / Number of Average outstanding common share

Rye's earnings per share = 472,400 / 196,000

Rye's earnings per share = $2.41 per share (Approx.)