1. Earnings per share

   Financial statement data for the years 20Y5 and 20Y6 for Black Bull Inc. follow:

   	20Y5		20Y6
   Net income	$1,715,000		$2,415,000
   Preferred dividends	$50,000		$50,000
   Average number of common shares outstanding	90,000	shares	110,000	shares

   a. Determine the earnings per share for 20Y5 and 20Y6. Round to two decimal places.

   	20Y5		20Y6
   Earnings per Share	$fill in the blank 1		$fill in the blank 2

   b. Is the change in the earnings per share from 20Y5 to 20Y6 favorable or unfavorable?

   FavorableUnfavorable