Question
Earnings Per Share Financial statement data for the years ended December 31 for Dovetail Corporation follow: 20Y3 20Y2 Net income $604,500 $488,000 Preferred dividends $92,000
Earnings Per Share
Financial statement data for the years ended December 31 for Dovetail Corporation follow:
| 20Y3 | 20Y2 | |||
| Net income | $604,500 | $488,000 | ||
| Preferred dividends | $92,000 | $92,000 | ||
| Average number of common shares outstanding | 50,000 | shares | 40,000 | shares |
a. Determine the earnings per share for 20Y3 and 20Y2. Round your answers to two decimal places.
| 20Y3 | $ per share |
| 20Y2 | $ per share |
b. Does the change in the earnings per share from 20Y2 to 20Y3 indicate a favorable or an unfavorable trend?
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Financial Accounting Tools For Business Decision Making
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso
4th Edition
0471730513, 978-0471730514
