1. LESSON 15-2
Analyzing an Income
Statement
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning

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
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
TERMS REVIEW
page 460
 financial ratio
 earnings per share
 price-earning ratio
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
LESSON 15-2