Financial Accounting Homework

[Kishan]

We were given the balance sheet for a certain imaginary company. We have to calculate Earnings Per Share, but are not given Net Income or Sales Revenue. We are given Cash by operating activities though (is that net income?) . How can I calculate EPS?

Thanks,
Kishan

 

[Abix]

Arent you not allowed to do homework posts in here?

 

[Kishan]

Originally posted by: Abix
Arent you not allowed to do homework posts in here?

I thought you were if you explicitly stated it is homework😕

 

[nycxandy]

Originally posted by: KPSHAH316

Originally posted by: Abix
Arent you not allowed to do homework posts in here?

I thought you were if you explicitly stated it is homework😕

It's allowed... just don't pass it off as "some self test", "helping a friend", "refreshing my memory" or anything of that sort.

 

[DaWhim]

EPS = net income/total shares

for operating activity,
total rev
- total expenses
= net income

read the textbook

 

[Kishan]

Originally posted by: DaWhim
EPS = net income/total shares

for operating activity,
total rev
- total expenses
= net income

read the textbook

If you would have read the OP carefully enough, you would have seen the words, "balance sheet." That implies assets and liabilities. Exihibit 2 from the OP would show, "We have to calculate Earnings Per Share, but are not given Net Income orSales Revenue."

😛


Now does anyone have the answer? What is cash from operations? Is that a synonym for net income?

 

[iwantanewcomputer]

"I may be a moron"
"Financial Accounting Homework"

you would communicate more effectively if you didn't repeat yourself

 

[Kishan]

Originally posted by: iwantanewcomputer
"I may be a moron"
"Financial Accounting Homework"

you would communicate more effectively if you didn't repeat yourself

why whats wrong with Financial Accounting? I actually like it.

 

[Doggiedog]

Cash from operations is just that. Cash from operating activities. You cannot calculate Net Income from that alone in most cases since companies will likely have interest income/expenses, taxes, etc.

 

[Kishan]

Originally posted by: Doggiedog
Cash from operations is just that. Cash from operating activities. You cannot calculate Net Income from that alone in most cases since companies will likely have interest income/expenses, taxes, etc.

Yeah thats what I thinking. Thanks for your help. Will talk to 'teach tomorrow🙂