# EPS Junkyard Arts, Inc., had earnings of $316,000 for the year. The company had 40,000 shares of common stock outstanding during the year and issued 15,000 shares of$50 par value preferred stock. The preferred stock has a dividend of $1.60 per share. There were no transactions in either common or preferred stock during the year. Determine the basic earnings per share for Junkyard Arts for the year. BuyFindarrow_forward ### Financial Accounting 15th Edition Carl Warren + 2 others Publisher: Cengage Learning ISBN: 9781337272124 #### Solutions Chapter Section BuyFindarrow_forward ### Financial Accounting 15th Edition Carl Warren + 2 others Publisher: Cengage Learning ISBN: 9781337272124 Chapter 13, Problem 23E Textbook Problem 6 views ## EPSJunkyard Arts, Inc., had earnings of$316,000 for the year. The company had 40,000 shares of common stock outstanding during the year and issued 15,000 shares of $50 par value preferred stock. The preferred stock has a dividend of$1.60 per share. There were no transactions in either common or preferred stock during the year.Determine the basic earnings per share for Junkyard Arts for the year.

To determine

Calculate the basic earnings per share for Incorporation J for the year.

### Explanation of Solution

Earnings per share:  Earnings per share represent the amount of income earned per share of outstanding common stock in a period. This ratio is used for analyzing the profitability of company’s stockholders’.

The following formula can be used to calculate earnings per share:

Earnings per shareNet income(loss) – Preferred dividendsAverage number of common shares outstanding

Determine the basic earnings per share for Incorporation J for the year.

Basic earnings per share forIncorporation J for the year}Net income – Preferred dividen

### Still sussing out bartleby?

Check out a sample textbook solution.

See a sample solution

#### The Solution to Your Study Problems

Bartleby provides explanations to thousands of textbook problems written by our experts, many with advanced degrees!

Get Started