Earnings per share OBJ. 7 Financial statement data for the years ended December 31 for Black Bull Inc. follows:

2016 2015 Net income $2,485,700 $1,538,000 Preferred dividends $50,000 $50,000 Average number of common shares outstanding 115,000 shares 80,000 shares

a. Determine the earnings per share for 2016 and 2015.

b. Does the change in the earnings per share from 2015 to 2016 indicate a favorable or an unfavorable trend?

EE 11-8 p. 519 SHOW ME HOW Exercises