For the year that just ended, Leaf Manufacturing had net income of $786,400 and preferred dividends of $38,500. Over the same period, Sky Industries had an EPS of $2.95 and preferred dividends of $42,300. If both firms had 240,000 weighted-average common shares outstanding, then which of the following statements is true? 

Leaf had a lower EPS and a lower net income. 

Leaf had a lower EPS but a higher net income.

 Leaf had a higher EPS and a higher net income. 

Leaf had a higher EPS but a lower net income.

Answer rating: 100% (QA)

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