Financial statement data for the years ended December 31 for Black Bull Inc. follow: 20Y6 20Y5Net income $2,485,700 $1,538,000Preferred dividends $50,000 $50,000Average number of common shares outstanding 115,000 shares 80,000 sharesa. Determine the earnings per share for 20Y6 and 20Y5.b. Does the change in the earnings per share from 20Y5 to 20Y6 indicate a favorable or unfavorable trend?
Financial statement data for the years ended December 31 for Black Bull Inc. follow: 20Y6 20Y5Net income $2,485,700 $1,538,000Preferred dividends $50,000 $50,000Average number of common shares outstanding 115,000 shares 80,000 sharesa. Determine the earnings per share for 20Y6 and 20Y5.b. Does the change in the earnings per share from 20Y5 to 20Y6 indicate a favorable or unfavorable trend?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Financial statement data for the years ended December 31 for Black Bull Inc. follow:
20Y6 20Y5
Net income $2,485,700 $1,538,000
Preferred dividends $50,000 $50,000
Average number of common shares outstanding 115,000 shares 80,000 shares
a. Determine the earnings per share for 20Y6 and 20Y5.
b. Does the change in the earnings per share from 20Y5 to 20Y6 indicate a favorable or unfavorable trend?
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