Question

For 2017, stoneland corporation reported net income, $24,000; net sales, $400,000; and average shares outstanding, 6,000. there were no preferred stock dividends. how much was the 2017 earnings per share?

Answer 1

Net sales is the amount of sales generated by a certain company after all the deductions for allowances, damages, and others are made where as the net income is the company's total earnings. I think, with 6,000 outstanding shares, each share has an average shares outstanding of,
                                            $24,000 / 6,000 = $4