Suppose the following information is available for Callaway Golf Company for the years 2017 and 2016. (Dollars

Question:

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

____________________________20172016

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 company's earnings per share for each year?

(b) Based on your findings above, how did the company's 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)?

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on...