Lesson 15 2

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Lesson 15 2

  1. 1. LESSON 15-2 Analyzing an Income Statement CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
  2. 2. 2 ANALYZING AN INCOME STATEMENT SHOWING A NET LOSS CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning page 457 LESSON 15-2
  3. 3. 3 FINANCIAL RATIOS page 459 Earnings per Share Net Income after Federal Income Tax Number of ÷ = Shares Outstanding $80,313.95 ÷ 2,500 Earnings per Share = $32.13 = Price-Earnings Ratio = 10.7 Price-Earnings Ratio Market Price per Share ÷ Earnings per Share $345.00 ÷ $32.13 CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 15-2
  4. 4. 4 TERMS REVIEW page 460  financial ratio  earnings per share  price-earning ratio CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 15-2

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