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Earnings Per Share | Accounting homework help

Oriole Medical manufactures hospital beds and other institutional furniture. The company’s comparative balance sheet and income statement for 2015 and 2016 follow.

Oriole Medical
Comparative Balance Sheet
As of December 31
2016 2015
Assets
Current assets
Cash $308,000 $417,450
Accounts receivable, net 1,065,800 776,450
Inventory 726,000 681,050
Other current assets 382,000 247,050
Total current assets 2,481,800 2,122,000
Property, plant, & equipment, net 9,987,505 8,418,295
Total assets $12,469,305 $10,540,295
Liabilities and Stockholders’ Equity
Current liabilities $3,164,000 $2,846,000
Long-term debt 3,702,600 3,892,700
Total liabilities 6,866,600 6,738,700
Preferred stock, $5 par value 50,600 50,600
Common stock, $0.25 par value 179,000 103,900
Retained earnings 5,373,105 3,647,095
Total stockholders’ equity 5,602,705 3,801,595
Total liabilities and stockholders’ equity $12,469,305 $10,540,295
Oriole Medical
Comparative Income Statement and Statement of Retained Earnings
For the Year
2016 2015
Sales revenue (all on account) $10,450,000 $9,614,000
Cost of goods sold 4,168,000 5,298,800
Gross profit 6,282,000 4,315,200
Operating expenses 2,840,200 2,634,150
Net operating income 3,441,800 1,681,050
Interest expense 351,000 308,700
Net income before taxes 3,090,800 1,372,350
Income taxes (30%) 927,240 411,705
Net income $2,163,560 $960,645
Dividends paid
Preferred dividends 29,550 29,550
Common dividends 408,000 460,000
Total dividends paid 437,550 489,550
Net income retained 1,726,010 471,095
Retained earnings, beginning of year 3,647,095 3,176,000
Retained earnings, end of year $5,373,105 $3,647,095

 

Calculate the earnings per share (average of 412,000 shares outstanding for the year) for 2016.

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