4EarningPerShare

4EarningPerShare - Earnings Per Share T1 1-3 Must be...

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Unformatted text preview: Earnings Per Share T1 1-3 - Must be disclosed on the face of the income statement per GAAP - Represents the amount of a company’s net income per share of its outstanding stock . Calculated as: Net Income Weighted-average shares of Common Stock Outstanding +- Example: Tanner Company had 600 shares of common stock outstanding as ot January 1. 400 additional shares were sold on Apri! 1. Net income for the year was $9,000. Weighted-average shares: 600 shares at 3.312 year (January March) 150 1,000 shares at 9f12 year (April December) 75 Weighted-average shares outstanding 90 Earnings Per Share: $9,000.-’900 = $10.00 per share fltmwfimm.m ...
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