Financial statement data for the years ended December 31 for Dovetail Corporation are shown below.

a. Determine the earnings per share for 2014 and 2013.
b. Does the change in the earnings per share from 2013 to 2014 indicate a favorable or an unfavorabletrend?

Transcribed Image Text:

Net income Preferred dividends Average number of common shares outstanding 2014 $448,750 $40,000 2013 $376,000 $40,000 75,000 shares 60,000 shares