Financial Accounting

15th Edition
Carl Warren + 2 others
ISBN: 9781337272124



Financial Accounting

15th Edition
Carl Warren + 2 others
ISBN: 9781337272124
Textbook Problem

Earnings per share, discontinued operations

The net income reported on the income statement of Cutler Co. was $4,000,000. There were 500,000 shares of $10 par common stock and 100,000 shares of $2 preferred stock outstanding throughout the current year. The income statement included a gain on discontinued operations of $400,000 after applicable income tax. Determine the per-share figures for common stock for (a) income before discontinued operations and (b) net income.


To determine

Financial Ratios: Financial ratios are the metrics used to evaluate the liquidity, capabilities, profitability, and overall performance of a company.

Given info: Items from financial statements

To determine:  The per share figures for common stock for

  1. a) Income before discontinued operations

Earnings per share help to measure the profitability of a company. Earnings per share are the amount of profit that is allocated to each share of outstanding stock.


Earningspershare on incomebefore discontinued operations} = Income before discontiued operations – PreferreddividendsWeighted average number of common shares outstanding

Working note for determination of earnings before discontinued operations and preferred divide


To determine

the Net income

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

Additional Business Solutions

Find more solutions based on key concepts

Show solutions add

In what ways is economics a science?

Principles of Microeconomics (MindTap Course List)

Why are some economists against a target of zero inflation?

Principles of Macroeconomics (MindTap Course List)

What are the major reasons for conducting marketing research?

Foundations of Business (MindTap Course List)

Why do economists make assumptions?

Essentials of Economics (MindTap Course List)

CASH CONVERSION CYCLE Christie Corporation is trying to determine the effect of its inventory turnover ratio an...

Fundamentals of Financial Management, Concise Edition (with Thomson ONE - Business School Edition, 1 term (6 months) Printed Access Card) (MindTap Course List)