Question 8 of 8

Fedex furniture. The company's comparative balance sheet and income statement for 2019 and 2020 follow.

Fedex furniture Comparative Balance Sheet As of December 31
		2020		2019
Assets
Current assets
Cash		$377,000		$417,400
Accounts receivable, net		1,048,000		776,450
Inventory		729,000		681,100
Other current assets		381,300		247,100
Total current assets		2,535,300		2,122,050
Property, plant, & equipment, net		8,706,535		8,440,045
Total assets		$11,241,835		$10,562,095
Liabilities and Stockholders' Equity
Current liabilities		$3,181,000		$2,846,100
Long-term debt		3,702,700		3,892,650
Total liabilities		6,883,700		6,738,750
Preferred stock, $5 par value		59,000		59,000
Common stock, $0.25 par value		104,650		103,900
Retained earnings		4,194,485		3,660,445
Total stockholders' equity		4,358,135		3,823,345
Total liabilities and stockholders' equity		$11,241,835		$10,562,095

Fedex furniture Comparative Income Statement and Statement of Retained Earnings For the Year
		2020		2019
Sales revenue (all on account)		$10,177,200		$9,613,900
Cost of goods sold		5,612,450		5,298,750
Gross profit		4,564,750		4,315,150
Operating expenses		2,840,250		2,634,150
Net operating income		1,724,500		1,681,000
Interest expense		300,300		308,650
Net income before taxes		1,424,200		1,372,350
Income taxes (30%)		427,260		411,705
Net income		$996,940		$960,645
Dividends paid
Total dividends paid		462,900		442,550
Net income retained		534,040		518,095
Retained earnings, beginning of year		3,660,445		3,142,350
Retained earnings, end of year		$4,194,485		$3,660,445

(a)

Calculate the earnings per share (average of 418,000 shares outstanding for the year) for 2020. (Round answer to 2 decimal places, e.g. 2.55.)

Earning per share

$ per share