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Financial statement data for the years ended December 31 for Dovetail Corporation follow:                                                                                      20Y3             20Y2Net income                                                                $448,750         $376,000Preferred dividends                                                   $40,000           $40,000Average number of common shares outstanding      75,000 shares    60,000 sharesa. Determine the earnings per share for 20Y3 and 20Y2.b. Does the change in the earnings per share from 20Y2 to 20Y3 indicate a favorable or unfavorable trend?

Financial statement data for the years ended December 31 for Dovetail Corporation follow:                                                                                      20Y3             20Y2Net income                                                                $448,750         $376,000Preferred dividends                                                   $40,000           $40,000Average number of common shares outstanding      75,000 shares    60,000 sharesa. Determine the earnings per share for 20Y3 and 20Y2.b. Does the change in the earnings per share from 20Y2 to 20Y3 indicate a favorable or unfavorable trend?

FINANCIAL ACCOUNTING
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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Financial statement data for the years ended December 31 for Dovetail Corporation follow:
                                                                                      20Y3             20Y2
Net income                                                                $448,750         $376,000
Preferred dividends                                                   $40,000           $40,000
Average number of common shares outstanding      75,000 shares    60,000 shares
a. Determine the earnings per share for 20Y3 and 20Y2.
b. Does the change in the earnings per share from 20Y2 to 20Y3 indicate a favorable or unfavorable trend?

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