Dakota Inc. and Jersey & Company are two large companies that manufacture and sell equipment used in the construction, mining, agricultural, and forestry industries. The companies reported the following data (in millions) for two recent years: Dakota Jersey Year 2 Year 1 Year 2 Year 1 Net income $2,162 $3,705 $1,925 $3,252 Average number of common shares 594 599 334 363 outstanding a. Determine the earnings per share in Year 2 and Year 1 for each company. Round your answers to two decimal places. Year 2 Year 1 Dakota $ per share 2$ per share Jersey $ per share per share b. Evaluate the relative profitability of the two companies. earnings per share for Year 1 and Year 2 are higher than However, from Year 1 to Year 2, the earnings per share for both companies The slowing world economy contributed to the from Year 1 to Year 2. Overall, appears to be the more profitable company.

Dakota Inc. and Jersey & Company are two large companies that manufacture and sell equipment used in the construction, mining, agricultural, and forestry industries. The companies reported the following data (in millions) for two recent years: Dakota Jersey Year 2 Year 1 Year 2 Year 1 Net income $2,162 $3,705 $1,925 $3,252 Average number of common shares 594 599 334 363 outstanding a. Determine the earnings per share in Year 2 and Year 1 for each company. Round your answers to two decimal places. Year 2 Year 1 Dakota $ per share 2$ per share Jersey $ per share per share b. Evaluate the relative profitability of the two companies. earnings per share for Year 1 and Year 2 are higher than However, from Year 1 to Year 2, the earnings per share for both companies The slowing world economy contributed to the from Year 1 to Year 2. Overall, appears to be the more profitable company.

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Financial Reporting, Financial Statement Analysis and Valuation

8th Edition

ISBN:9781285190907

Author:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

Publisher:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

Chapter4: Profitability Analysis

Section: Chapter Questions

Problem 11QE: Phillips-Van Heusen, an apparel manufacturer, reported net income (amounts in thousands) for Year 4...

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