The balance sheets at the end of each of the first two years of operations indicate the following:
| 2016 | 2015 | |
|---|---|---|
| Total current assets | $600,000 | $560,000 |
| Total investments | $60,000 | $40,000 |
| Total property, plant, and equipment | $900,000 | $700,000 |
| Total current liabilities | $125,000 | $80,000 |
| Total long-term liabilities | $350,000 | $250,000 |
| Preferred 9% stock, $100 par | $100,000 | $100,000 |
| Common stock, $10 par | $600,000 | $600,000 |
| Paid-in capital in excess of par-Common stock | $60,000 | $60,000 |
| Retained earnings | $325,000 | $210,000 |
Based on the above information, if net income is $130,000 and interest expense is $40,000 for 2016, and the market price is $40, what is the price-earnings ratio on common stock?
A. 19.8
B. 18.4
C. 17.3
D. 14.9
During the fiscal year ended September 30, 2017, Happster Co. had a 5-for-1 stock split. In its annual report for 2017, the company reported earnings per share for the year ended September 30, 2016, on a restated basis, of $0.85.
Calculate the originally reported earnings per share by Happster Co. for the year ended September 30, 2016.
