I have started teaching myself basic business stuff and have a question regarding calculating earnings per share. Q: <br> [bunch of numbers for revenue, expenses...] At the beginning of year: 80,000 shares outstanding.<br>In June, 20,000 shares sold for $8/share. What is the EPS? <hr> I understand EPS = net income / time average of total shares outstanding. However I have two questions: <br> 1. Is the money from the shares sold added to net income? <br> 2. Is the total number of shares after the sale of shares 100,000?