Fundamentals of Financial Accounting 4th Edition by Fred Phillips,Robert Libby,Patricia Libby

Exercise 17

Calculating and Interpreting Earnings per Share (EPS) and Return on Equity (ROE)
Academy Driving School reported the following amount in its financial statements:

Calculate 2013 EPS and ROE. Another driving school in the same city reported a higher net income ($45,000) in 2013, yet its EPS and ROE ratios were lower than those for the Academy Driving School. Explain how this apparent inconsistency could occur.