Frantic Fast Foods had earnings after taxes of $1,320,000 in 20X1 with 384,000 shares outstanding. On January 1, 20X2, the firm issued 45,000 new shares. Because of the proceeds from these new shares and other operating improvements, earnings after taxes increased by 26 percent. a. Compute earnings per share for the year 20X1. (Round the answer to 2 decimal places.) b. Compute earnings per share for the year 20X2. (Round the answer to 2 decimal places.)

Frantic Fast Foods had earnings after taxes of $1,320,000 in 20X1 with 384,000 shares outstanding. On January 1, 20X2, the firm issued 45,000 new shares. Because of the proceeds from these new shares and other operating improvements, earnings after taxes increased by 26 percent. a. Compute earnings per share for the year 20X1. (Round the answer to 2 decimal places.) b. Compute earnings per share for the year 20X2. (Round the answer to 2 decimal places.)

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 55E: Rebert Inc. showed the following balances for last year: Reberts net income for last year was...

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