I'm working on financing and I am completely stuck. I'm trying to find the earnings per share. Here's the problem:
The balance sheet for the Corlione Company for 2005 is shown below. Sales in 2005 were $782,211 and the firm's net profit margin was (and is projected to continue to be in the future) 5 percent.
The Corlione Company
Balance Sheet - Dec. 31, 2005
Cash... 20,000
Accounts receivable... 40,000
Inventory... 60,000
Net Plant & Equipment... 200,000
Total Assets... 320,000
Notes payable... 10,000
Accounts payable... 40,000
Accruals... 10,000
Long-term debt... 90,000
Common stock ($4 par value)... 90,000
Retained earnings... 80,000
Total liabilities & Equity... 320,000
What were earnings per share for Corlione in 2005?
