Pacific Gas and Electric Company is a large gas and electric utility operating in northern and central California. Three recent years of financial data for Pacific Gas and Electric Company are as follows: Fiscal Years Ended (in millions) Year 3 Year 2 Year 1 Net income $(6,837) $1,660 $1,407 Preferred dividends $14 $14 $14 Average number of common shares outstanding 517 512 499 a. Determine the earnings per share for fiscal Year 3, Year 2, and Year 1. Round to two decimal places. Negative amount should be indicated by the minus sign. Year 3 Earnings $fill in the blank 1 per share Year 2 Earnings $fill in the blank 2 per share Year 1 Earnings $fill in the blank 3 per share b. Evaluate the growth in earnings per share for the three years in comparison to the growth in net income for the three years. Round your answers to the nearest whole percentage. Negative amount should be indicated by the minus sign. Earnings per share growth as a percent of Year 1 (base year) Year 3 fill in the blank Year 2 fill in the blank Year 1 Earnings fill in the blank Net income growth as a percent of Year 1 (base year) Year 3 fill in the blank Year 2 fill in the blank Year 1 Earnings fill in the blank

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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Pacific Gas and Electric Company is a large gas and electric utility operating in northern and central California. Three recent years of financial data for Pacific Gas and Electric Company are as follows:

	Fiscal Years Ended (in millions)
	Year 3	Year 2	Year 1
Net income	$(6,837)		$1,660	$1,407
Preferred dividends	$14		$14	$14
Average number of common shares outstanding	517		512	499

a. Determine the earnings per share for fiscal Year 3, Year 2, and Year 1. Round to two decimal places. Negative amount should be indicated by the minus sign.

Year 3 Earnings	$fill in the blank 1 per share
Year 2 Earnings	$fill in the blank 2 per share
Year 1 Earnings	$fill in the blank 3 per share

b. Evaluate the growth in earnings per share for the three years in comparison to the growth in net income for the three years. Round your answers to the nearest whole percentage. Negative amount should be indicated by the minus sign.

Earnings per share growth as a percent of Year 1 (base year)

Year 3	fill in the blank
Year 2	fill in the blank
Year 1 Earnings	fill in the blank

Net income growth as a percent of Year 1 (base year)

Year 3	fill in the blank
Year 2	fill in the blank
Year 1 Earnings	fill in the blank

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