Suppose the following information is available for Callaway Golf Company for the years 2014 and 2013. (Dollars are in thousands, except share information.)

2014 2013 Net sales $1,117,204 $1,124,591 Net income (loss) 66,176 54,587 Total assets 855,338 838,078 Share information Shares outstanding at year-end 64,507,000 66,282,000 Preferred dividends –0– –0–

There were 73,139,000 shares outstanding at the end of 2012.

Instructions

(a) What was the company’s earnings per share for each year?

(b) Based on your findings above, how did the company’s profitability change from 2013 to 2014?

(c) Suppose the company had paid dividends on preferred stock and on common stock during the year. How would this affect your calculation in part (a)?

AppendixLO1