Frantic Fast Foods had earnings after taxes of $900,000 in 20X1 with 301,000 shares outstanding. On January 1, 20X2, the firm issued 32,000 new shares. Because of the proceeds from these new shares and other operating improvements, earnings after taxes increased by 28 percent. Compute earnings per share for the year 20X1. Note: Round your answer to 2 decimal places. Compute earnings per share for the year 20X2. Note: Round your answer to 2 decimal places.

Frantic Fast Foods had earnings after taxes of $900,000 in 20X1 with 301,000 shares outstanding. On January 1, 20X2, the firm issued 32,000 new shares. Because of the proceeds from these new shares and other operating improvements, earnings after taxes increased by 28 percent. Compute earnings per share for the year 20X1. Note: Round your answer to 2 decimal places. Compute earnings per share for the year 20X2. Note: Round your answer to 2 decimal places.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Frantic Fast Foods had earnings after taxes of $900,000 in 20X1 with 301, 000 shares
outstanding. On January 1, 20X2, the firm issued 32,000 new shares. Because of the proceeds
from these new shares and other operating improvements, earnings after taxes increased by
28 percent. Compute earnings per share for the year 20X1. Note: Round your answer to 2
decimal places. Compute earnings per share for the year 20X2. Note: Round your answer to 2
decimal places.

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