The balance sheets at the end of each of the first 2 years of operations indicate the following: Kellman Company Year 2 Year 1 Total current assets $600,000 $560,000 Total investments 60,000 40,000...


The balance sheets at the end of each of the first 2 years of operations indicate the following:<br>Kellman Company<br>Year 2<br>Year 1<br>Total current assets<br>$600,000<br>$560,000<br>Total investments<br>60,000<br>40,000<br>Total property, plant, and equipment<br>900,000<br>700,000<br>Total current liabilities<br>125,000<br>65,000<br>Total long-term liabilities<br>350,000<br>250,000<br>Preferred 9% stock, $100 par<br>100,000<br>100,000<br>Common stock, $10 par<br>600,000<br>600,000<br>Paid-in capital in excess of par-common stock<br>75,000<br>75,000<br>Retained earnings<br>310,000<br>210,000<br>Using the balance sheets for Kellman Company, if net income is $250,000 and interest expense is $30,000 for Year 2, what are the earnings<br>per share on common stock for Year 2 (rounded to the nearest cent)?<br>Oa. $2.49<br>Ob. $4.02<br>Oc. $4.16<br>Od. $4.32<br>

Extracted text: The balance sheets at the end of each of the first 2 years of operations indicate the following: Kellman Company Year 2 Year 1 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 65,000 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 75,000 75,000 Retained earnings 310,000 210,000 Using the balance sheets for Kellman Company, if net income is $250,000 and interest expense is $30,000 for Year 2, what are the earnings per share on common stock for Year 2 (rounded to the nearest cent)? Oa. $2.49 Ob. $4.02 Oc. $4.16 Od. $4.32

Jun 10, 2022
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