Consider the summarized data from the balance sheets and income statements of Wiper Inc. Calculate the earnings per share for 2020 and 2019.
| Wiper Inc. Condensed Balance Sheets December 31, 2020, 2019, 2018 (in millions) |
|||
|---|---|---|---|
| 2020 | 2019 | 2018 | |
| Current assets | $764 | $981 | $843 |
| Other assets | 2,424 | 1,931 | 1,730 |
| Total assets | $3,188 | $2,912 | $2,573 |
| Current liabilities | $588 | $841 | $734 |
| Long-term liabilities | 1,582 | 1,034 | 910 |
| Stockholders’ equity | 1,018 | 1,037 | 929 |
| Total liabilities and stockholders’ equity | $3,188 | $2,912 | $2,573 |
| Wiper Inc. Selected Income Statement and Other Data For the year Ended December 31, 2020 and 2019 (in millions) |
||
|---|---|---|
| 2020 | 2019 | |
| Income statement data: | ||
| Sales | $3,061 | $2,924 |
| Operating income | 307 | 321 |
| Interest expense | 95 | 76 |
| Net income | 224 | 219 |
| Other data: | ||
| Average number of common shares outstanding | 42.4 | 47.8 |
| Total dividends paid | $61.0 | $53.4 |
For last year, Casper Corporation reported a net income of $625,000 and paid $175,000 in dividends for the 300,000 preferred shares issued. The weighted average of common shares was 1,000,000 shares. Roxy’s basic earnings per share were:
a. $0.63.
b. $0.33.
c. $0.15.
d. $0.45.
