Earnings Per Share Financial statement data for the years ended December 31 for Cottontop Corporation follow: 20Υ3 20Υ2 Net income $248,000 $210,500 Preferred dividends $38,000 $38,000 Average number of common shares outstanding 40,000 shares 30,000 shares a. Determine the earnings per share for 20Y3 and 20Y2. Round your answers to two decimal places. 20Υ3 $4 per share 20Υ2 $4 per share b. Does the change in the earnings per share from 20Y2 to 20Y3 indicate a favorable or unfavorable trend?
Earnings Per Share Financial statement data for the years ended December 31 for Cottontop Corporation follow: 20Υ3 20Υ2 Net income $248,000 $210,500 Preferred dividends $38,000 $38,000 Average number of common shares outstanding 40,000 shares 30,000 shares a. Determine the earnings per share for 20Y3 and 20Y2. Round your answers to two decimal places. 20Υ3 $4 per share 20Υ2 $4 per share b. Does the change in the earnings per share from 20Y2 to 20Y3 indicate a favorable or unfavorable trend?
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter15: Financial Statement Analysis
Section: Chapter Questions
Problem 54E: Rebert Inc. showed the following balances for last year: Reberts net income for last year was...
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Transcribed Image Text:Earnings Per Share
Financial statement data for the years ended December 31 for Cottontop Corporation follow:
20Y3
20Y2
Net income
$248,000
$210,500
Preferred dividends
$38,000
$38,000
Average number of common shares outstanding
40,000 shares
30,000 shares
a. Determine the earnings per share for 20Y3 and 20Y2. Round your answers to two decimal places.
20Y3
per share
20Y2
per share
b. Does the change in the earnings per share from 20Y2 to 20Y3 indicate a favorable or unfavorable trend?
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