Asked by Samantha Beveridge on Jun 15, 2024
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Lewis Company had net income of $67,000.The company had 9,000 weighted average common shares outstanding.The basic earnings per share equals $7.44 per share.
Net Income
The total profit of a company after all expenses, including taxes and operating costs, have been deducted from revenues.
Weighted Average
A calculation that takes into account the varying weights of items in a dataset, often used in accounting to compute inventory values.
Common Shares
Equity investments representing ownership in a corporation, granting holders voting rights and a share in the company's profitability.
- Understand the fundamental principles and significance of corporate financial statements and shareholder equity.
- Evaluate the importance of financial ratios, including dividend yield and price-earnings ratio, for assessing company performance.
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Learning Objectives
- Understand the fundamental principles and significance of corporate financial statements and shareholder equity.
- Evaluate the importance of financial ratios, including dividend yield and price-earnings ratio, for assessing company performance.
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