At December 31, 2011 and 2010, Miley Corp. had 180,000 shares of common stock and 10,000 shares of 5%, $100 par value cumulative preferred stock outstanding. No dividends were declared on either the preferred or common stock in 2011 or 2010. Net income for 2011 was $400,000. What does the 2011, earnings per common share amount to?

$1.94

Explanation:

Computation of what 2011, earnings per common share amounted to

Using this formula

Net income-(Shares of 5%×Par value cumulative preferred stock outstanding× Shares percentage)/Shares of Common stock

Let plug in the formula

Earning per share of common stock =$400,000 – (10,000 × $100 × .05)/$180,000

Earning per share of common stock=$400,000-$50,000/$180,000

Earning per share of common stock=$350,000/$180,000

Earning per share of common stock=$1.94

Therefore the Earning per share of common stock will amount to $1.94

both are integral parts of a corporate balance sheet. the cash flow statement, or statement of cash flows, measures the sources of a company's cash and its uses of cash over a specific time period. the income statement measures a company's financial performance, such as revenues, expenses, profits or losses over a specific time period (in fact, it's sometimes called a statement of financial performance).

a cash flow statement shows exactly how much money a company has received and how much it has spent, traditionally over a period of one month. it captures the current operating results and changes on the balance sheet, such as increases or decreases in accounts receivable or accounts payable, and does not include noncash accounting items such as depreciation and amortization. the cash flow generally comes from revenue received as a result of business activity, but it may be augmented by funds available as a result of credit. a cash flow statement is used to determine the short-term viability and liquidity of a company, specifically how well it is positioned to pay its bills and vendors.