### Earnings per ShareFinancial statement data for the years 20Y5 and 20Y6 for Black Bull Inc. are as follows:| | 20Y5 | 20Y6 ||---------------------------|------------|------------|| **Net Income** | $1,689,000 | $2,425,000 || **Preferred Dividends** | $60,000 | $60,000 || **Average Number of Common Shares Outstanding** | 90,000 shares | 110,000 shares |#### Instructions:a. Determine the earnings per share (EPS) for 20Y5 and 20Y6. Round your answers to two decimal places.| | 20Y5 | 20Y6 ||---------------------------|------------|------------|| **Earnings per Share** | $ [Input] | $ [Input] |b. Is the change in the earnings per share from 20Y5 to 20Y6 favorable or unfavorable?[Dropdown]### Detailed Steps to Calculate EPS**Formula for Earnings per Share (EPS):**\[ \text{Earnings per Share} = \frac{\text{Net Income} - \text{Preferred Dividends}}{\text{Average Number of Common Shares Outstanding}} \]Substitute the provided values into the formula:1. **For 20Y5:**\[ \text{EPS} = \frac{1,689,000 - 60,000}{90,000} \]2. **For 20Y6:**\[ \text{EPS} = \frac{2,425,000 - 60,000}{110,000} \]With the given values, compute and compare the EPS for 20Y5 and 20Y6.### Explanation of Graphs/Diagrams:There are no additional graphs or diagrams included in this content. The relevant financial data is presented in tabular form for clarity and ease of calculation. Use the information provided to complete the EPS calculations and evaluate whether the change in earnings per share is favorable or unfavorable. Feedback will be generated based on the input provided and the calculations performed.

EPS is a financial term used to quantify the profitability of an organization and its performance on…

Earnings per share Financial statement data for the years 20Y5 and 20Y6 for Black Bull Inc. follow: 20Y5 $1,689,000 $60,000 90,000 shares Earnings per Share 20Y6 Net income Preferred dividends Average number of common shares outstanding a. Determine the earnings per share for 20Y5 and 20Y6. Round to two decimal places. 20Y5 20Y6 $2,425,000 $60,000 110,000 shar

Earnings per share Financial statement data for the years 20Y5 and 20Y6 for Black Bull Inc. follow: 20Y5 $1,689,000 $60,000 90,000 shares Earnings per Share 20Y6 Net income Preferred dividends Average number of common shares outstanding a. Determine the earnings per share for 20Y5 and 20Y6. Round to two decimal places. 20Y5 20Y6 $2,425,000 $60,000 110,000 shar

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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