Question

murray company reports net income of $945,500 for the year. it has no preferred stock, and its weighted - average common shares outstanding is 310,000 shares. compute its basic earnings per share. basic earnings per share choose numerator: / choose denominator: = basic eps accounts receivable -- current liabilities / = basic eps - / = per share

Explanation:

Step1: Recall Basic EPS Formula

Basic Earnings Per Share (EPS) formula is $\text{Basic EPS} = \frac{\text{Net Income - Preferred Dividends}}{\text{Weighted - Average Common Shares Outstanding}}$. Since there is no preferred stock, preferred dividends are $0$.

Step2: Identify Numerator and Denominator

Numerator: Net Income - Preferred Dividends = $\$945,500 - \$0 = \$945,500$.
Denominator: Weighted - Average Common Shares Outstanding = $310,000$ shares.

Step3: Calculate Basic EPS

$\text{Basic EPS} = \frac{945500}{310000} = 3.05$.

Answer:

The basic earnings per share is $\$3.05$ per share. (Filling the table: Numerator is Net Income (since no preferred dividends, so Net Income - 0), Denominator is Weighted - Average Common Shares Outstanding, and the result is $3.05$ per share.)