Explanation:
The correct answer is A because the trailing 12-month earnings for the period ended 30 June of Year 2 are calculated as follows:
Option B is incorrect as it adds the earnings for the year ended 31 December of Year 1 directly to the earnings for the six months ended 30 June of Year 2 (1,500 + 2,200 = 3,700), ignoring the adjustment for the overlapping period.
Option C is incorrect as it sums the earnings for the six months ended 30 June of Year 1 and Year 2 (2,000 + 2,200 = 4,200), which does not account for the full trailing 12-month period.
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An analyst compiles the following financial data (in € thousands) for a company with a fiscal year ending on 31 December:
The company's trailing 12-month earnings (in € thousands) for the period ended 30 June of Year 2 is:
A
1,700.
B
3,700.
C
4,200.
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