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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Question
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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