Financial statement data for the years 2015 and 2016 for Black Bull Inc. follow: Net income Preferred dividends Average number of common shares outstanding 20Y5 $1,355,000 $60,000 70,000 shares 20Y6 $2,578,500 $60,000 115,000 shares a. Determine the earnings per share for 2015 and 2016. Round to two decimal places. Earnings per Share 20Y5 X 20Y6 b. Is the change in the earnings per share from 2015 to 20Y6 favorable or unfavorable? Favorable
Financial statement data for the years 2015 and 2016 for Black Bull Inc. follow: Net income Preferred dividends Average number of common shares outstanding 20Y5 $1,355,000 $60,000 70,000 shares 20Y6 $2,578,500 $60,000 115,000 shares a. Determine the earnings per share for 2015 and 2016. Round to two decimal places. Earnings per Share 20Y5 X 20Y6 b. Is the change in the earnings per share from 2015 to 20Y6 favorable or unfavorable? Favorable
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Financial statement data for the years 2015 and 2016 for Black Bull Inc. follow:
Net income
Preferred dividends
Average number of common shares outstanding
20Y5
$1,355,000
$60,000
70,000 shares
20Y6
$2,578,500
$60,000
115,000 shares
a. Determine the earnings per share for 2015 and 2016. Round to two decimal places.
Earnings per Share
20Y5
X
20Y6
b. Is the change in the earnings per share from 2015 to 20Y6 favorable or unfavorable?
Favorable
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