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The 2017 income statement of pronghorn corporation showed net income of 468000 and a loss from discontinued operations of 116000. Pronghorn had 100000 shares of common stock oustanding all year. Prepare income statement presentation of earnings per share.

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Answer:

Income statement presentation of earnings per share is given below.

Net income                            $ 468,000

Discontinued operations       ($ 116,000)

Group Net income                  $ 352,000

EPS                                               $ 3.52

DPS                                               $ 3.52

Earning per share is an accounting ratio that is widely used by investors in stock market. The EPS is calculated as follow.

EPS = Net income/outstanding shares = 352,000/100,000 = $ 3.52

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