Suppose the following information is available for Callaway Golf Company for the years 2017 and 2016. (Dollars are in thousands, except share information.)

2017 2016

Net sales $1,117,204 $1,124,591

Net income (loss) 66,176 54,587

Total assets 855,338 838,078

Share information 2017 2016

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 2015.

Instructions

(a) What was the companys earnings per share for each year?

(b) Based on your findings above, how did the companys profitability change from 2016 to 2017?

(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)?