1)Junkyard Arts, Inc., had earnings of $461,500 for the year. The company had 55,000 shares of common stock outstanding during the year and issued 2,000 shares of $100 par value preferred stock. The preferred stock has a dividend of $8 per share. There were no transactions in either common or preferred stock during the year.

Determine the basic earnings per share for Junkyard Arts for the year. Round answer to two decimal places. $per share

2)Dakota Inc. and Jersey & Company are two large companies that manufacture and sell equipment used in the construction, mining, agricultural, and forestry industries. The companies reported the following data (in millions) for two recent years:

	Dakota				Jersey
	Year 2		Year 1		Year 2		Year 1
Net income	$2,187		$3,735		$1,915		$3,192
Average number of common shares outstanding	594		599		334		363

a. Determine the earnings per share in Year 2 and Year 1 for each company. Round your answers to two decimal places.

	Year 2	Year 1
Dakota	$ per share	$ per share
Jersey	$ per share	$ per share

b. Evaluate the relative profitability of the two companies.

earnings per share for Year 1 and Year 2 are higher than . However, from Year 1 to Year 2, the earnings per share for both companies . The slowing world economy contributed to the from Year 1 to Year 2. Overall, appears to be the more profitable company.