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The financial statements for a company included the following information:
Common Stock
$1,750,000
Retained Earnings
$950,000
Net Income
$1,250,000
Shares Issues
110,000
Shares Outstanding
90,000
Dividends Declared and Paid
$900,000
The common stock was sold at a price of $30 per share.
Complete the following:
(a) What is the amount of capital in excess of par?
(b) What was the amount of retained earnings at the beginning of the year?
(c) How many shares are in treasury stock?
(d) Compute earnings per share.
Why do you believe we have four? Do we need four? What are the advantages and disadvantages of having four methods?
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