Question

What is the EPS (earnings per share data)?

	2015
	Dr	Cr
Accounts Payable		999,210
Accounts Receivable	2,943,125
Accrued Liabilities - Other		508,643
Accrued Pension Liabilities		650,216
Accrued Restructuring Charges		126,000
Accrued Salaries, Wages and Commissions		281,364
Accumulated Other Comprehensive Income (Loss)	621,236
Accumulated Depreciation - Property, Plant & Equipment		1,829,634
Accumulated Post-Employment Benefit Obligation (long-term)		802,316
Additional Paid-in Capital, Common Stock		299,304
Additional Paid-in Capital, Preferred Stock		75
Allowance for Doubtful Accounts		125,436
Bonds Payable		244,563
Cash and Cash Equivalents	401,236
Common Stock ($1.00 par value) authorized 900 million shares issued 300 million shares in 2016, 284 million in 2015		300,000
Cost of Goods Sold	3,000,235
Current Portion of Long-term Debt		720,125
Deferred Tax Assets (current)	62,596
Deferred Tax Liabilities (long-term)		229,000
Depreciation Expense	307,200
Dividends - Common	292,351
Dividends - Preferred	2,000
General & Administrative Expenses	1,732,429
Goodwill and Other Intangibles	3,212,491
Income Taxes Payable		246,002
Interest Expense	201,366
Interest Income		10,126
Investments in unconsolidated affiliated companies	1,235,000
Inventories	163,214
Long-term Debt		3,223,713
(Loss) Income from Discontinued Operations, net of tax	28,100
Preferred Stock ($10 par value) authorized 10 million shares issued 90,000 shares in 2016, 90,000 in 2015		900
Prepaid Expenses	141,029
Property, Plant and Equipment	2,943,216
Provision for income taxes	245,105
Research and Development Expenses	199,500
Restructuring Charges	199,506
Retained Earnings, beginning		2,960,256
Sales		8,430,061
Selling Expenses	19,365
Short-term Investments	20,000
Treasury Stock, at cost - 117,156,719 shares in 2016 and 108,822,953 shares in 2015	4,472,969
Unearned Revenues		456,325
	22,443,269	22,443,269

Brady and Co.
Income Statement
As of December 31, 2015
Sales	8,430,061
Interest Income	10,126
Cost of Goods Sold	3,000,235
Gross Profit	5,439,952
Operating Expenses
Selling Expenses	19,365
General & Administrative Expenses	1,732,429
Research and Development Expenses	199,500
Restructuring Charges	199,506
Depreciation Expense	307,200
Total Operating Expenses	2,458,000
Operating Income	2,981,952
Interest Expense	(201,366)
Income from Continuing Operations	2,780,586
Provision for Income Tax	(245,105)
Discontinued Operations net of tax	(28,100)
Net Income	2,507,381
Preferred Dividends	2,000
Net Income -Retained Earnings	2,505,381

Answer 1

• All working forms part of the answer
• Earning per share = Net Income available to common stockholders/No. of weighted average common stock shares outstanding.
• Net Income (from Income Statement) available to Common Stock holder (after Preference Dividend) = $ 2,505,381,000

No. of common stock shares issued = 300 million = 300,000,000 shares
(-) Treasury Stock shares = 117,156,719 shares

Weighted Average common stock shares outstanding = 300,000,000 – 117,156,719 = 182,843,281 shares.

• Answer

Earning Per share = $ 2,505,381,000 / 182,843,281 shares.
= 13.70234….

Earning per share = $ 13.70 per share