Financial statement data for the years ended December 31 for Dovetail Corporation follow:

20Y3

20Y2

Net income

$1,168,000

$1,000,000

Preferred dividends

$178,000

$178,000

Average number of common shares outstanding

75,000

shares

60,000

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?