Frantic Fast foods had earnings after taxes of $420,000 20XI with 309,00 shares outstanding. On January 1, 20X2, the firm issued 20,000 new shares. Because of the proceeds from these new shares and other operating improvements, earnings after taxes increased by 30 percent. Compute earnings per share for the year 20XI. Compute earnings per shar for the year 20X2

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Chapter15: Financial Statement Analysis
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Problem 54E: Rebert Inc. showed the following balances for last year: Reberts net income for last year was...
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  1. Frantic Fast foods had earnings after taxes of $420,000 20XI with 309,00 shares outstanding. On January 1, 20X2, the firm issued 20,000 new shares. Because of the proceeds from these new shares and other operating improvements, earnings after taxes increased by 30 percent.
  2. Compute earnings per share for the year 20XI.
  3. Compute earnings per shar for the year 20X2

 

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