How to calculate earning per share?

Accounting class problem. Earning per share ratio?

• The only information given about a company. Year 1. 2004 2. 2003 Net sales 1. $934,564 2. $814,032 Net Income (loss) 1. (10,103) 2. 45,523 Total Asses ts 1. 735,737 2. 748,566 Share Information: Shares outstanding at year end 1. 69,111,349 2. 66,862,850 PPreferred dived ends 1. -0- 2. -0- There were 65,676,326 shares outstanding at the end of 2002. Problems: 1. What was the company's earning per share for each year? The solving equation is: Net income minus preferred divedends then divide that total with the total of shares outstanding average so (shares outstanding year beginning plus shares outstanding year end) divide that by 2 to get average)

• Answer:

  You don't have to adjust net income for preferred dividends since there were no preferred dividends. Year 1 EPS = (10,103,000)/67,987,100 = (0.1486) loss per share Year 2 EPS = 45,523,000/66,269,588 = 0.6869 earnings per share I presume your dollar values are in thousands.