Caterpillar Inc. and Deere & 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: CaterpillarDeereYear 2Year 1Year 2Year 1$2,102$3,695$1,940$3,162Net incomeAverage number of commonshares outstanding594599334363a. Determine the earnings per share in Year 2 and Year 1 for each company. Round tothe nearest cent.b. Evaluate the relative profitability of the two companies.

Name: Caterpillar Inc. and Deere & Company are two large companies that manu
Uploaded: 2022-11-04T13:36:16.000Z
Channel: Bartleby
Description: Caterpillar Inc. and Deere & 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: Ca

Earnings per share: Earnings per share represent the amount of income earned per share of…

Answered: Caterpillar Deere Year 2 Year 1 Year 2…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Question

Practice Pack

Caterpillar Inc. and Deere & 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:

Caterpillar
Deere
Year 2
Year 1
Year 2
Year 1
$2,102
$3,695
$1,940
$3,162
Net income
Average number of common
shares outstanding
594
599
334
363
a. Determine the earnings per share in Year 2 and Year 1 for each company. Round to
the nearest cent.
b. Evaluate the relative profitability of the two companies.

Expert Solution

Trending now

This is a popular solution!

Learn your way

Includes step-by-step video

Step by step

Solved in 3 steps with 3 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions