Calculate the earnings per share

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Reference no: EM133066614

Question - Crane Medical manufactures hospital beds and other institutional furniture. The company's comparative balance sheet and income statement for 2019 and 2020 follow.

Crane Medical Comparative Balance Sheet As of December 31

 

2020

2019

Assets

 

 

Current assets

 

 

Cash

$395,000

$417,450

Accounts receivable, net

1,044,000

776,450

Inventory

717,000

681,100

Other current assets

381,300

247,000

Total current assets

2,537,300

2,122,000

Property, plant, & equipment, net

8,706,025

8,439,980

Total assets

$11,243,325

$10,561,980

Liabilities and Stockholders' Equity

 

 

Current liabilities

$3,182,000

$2,846,000

Long-term debt

3,702,600

3,892,650

Total liabilities

6,884,600

6,738,650

Preferred stock, $5 par value

59,000

58,950

Common stock, $0.25 par value

104,650

103,850

Retained earnings

4,195,075

3,660,530

Total stockholders' equity

4,358,725

3,823,330

Total liabilities and stockholders' equity

$11,243,325

$10,561,980

 

Crane Medical Comparative Income Statement and Statement of Retained Earnings For the Year

 

2020

2019

Sales revenue (all on account)

$10,177,250

$9,614,000

Cost of goods sold

5,611,750

5,298,750

Gross profit

4,565,500

4,315,250

Operating expenses

2,840,300

2,634,200

Net operating income

1,725,200

1,681,050

Interest expense

300,350

308,650

Net income before taxes

1,424,850

1,372,400

Income taxes (30%)

427,455

411,720

Net income

$997,395

$960,680

Dividends paid

 

 

Preferred dividends

29,450

29,500

Common dividends

433,400

413,050

Total dividends paid

462,850

442,550

Net income retained

534,545

518,130

Retained earnings, beginning of year

3,660,530

3,142,400

Retained earnings, end of year

$4,195,075

$3,660,530

Required - Calculate the earnings per share (average of 425,000 shares outstanding for the year) for 2020.

Reference no: EM133066614

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