Financial statement data for the years 20Y5 and 20Y6 for Black Bull Inc. follow: 20Y5 20Y6 Net income $1,715,000 $2,404,000 Preferred dividends $50,000 $50,000 Average number of common shares outstanding 90,000 shares 110,000 shares a. Determine the earnings per share for 20Y5 and 20Y6. Round to two decimal places. 20Y5 20Y6 Earnings per Share $ $ b. Is the change in the earnings per share from 20Y5 to 20Y6 favorable or unfavorable?
Financial statement data for the years 20Y5 and 20Y6 for Black Bull Inc. follow: 20Y5 20Y6 Net income $1,715,000 $2,404,000 Preferred dividends $50,000 $50,000 Average number of common shares outstanding 90,000 shares 110,000 shares a. Determine the earnings per share for 20Y5 and 20Y6. Round to two decimal places. 20Y5 20Y6 Earnings per Share $ $ b. Is the change in the earnings per share from 20Y5 to 20Y6 favorable or unfavorable?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Earnings per share
Financial statement data for the years 20Y5 and 20Y6 for Black Bull Inc. follow:
20Y5 | 20Y6 | |||
Net income | $1,715,000 | $2,404,000 | ||
Preferred dividends | $50,000 | $50,000 | ||
Average number of common shares outstanding | 90,000 | shares | 110,000 | shares |
a. Determine the earnings per share for 20Y5 and 20Y6. Round to two decimal places.
20Y5 | 20Y6 | |||
Earnings per Share | $ | $ |
b. Is the change in the earnings per share from 20Y5 to 20Y6 favorable or unfavorable?
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