earnings per share

Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter16: Retained Earnings And Earnings Per Share
Section: Chapter Questions
Problem 8RE: Given the following year-end information for Somerset Corporation, compute its basic earnings per...
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Financial statement data for the years ended December 31 for Brown Cow Inc. follow:

  20Y6 20Y5
Net income $4,243,200   $2,855,360  
Preferred dividends $64,000   $64,000  
Average number of common shares outstanding 128,000 shares  104,000 shares 

a.  Determine the earnings per share for 20Y6 and 20Y5. Round your answers to two decimal places.

20Y6 $fill in the blank 1 per share
20Y5 $fill in the blank 2 per share

b.  Does the change in the earnings per share from 20Y5 to 20Y6 indicate a favorable or unfavorable trend?
Favorable 

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