Earnings per share Financial statement data for the years 20Y5 and 20Y6 for Black Bull Inc. follow: 20Y5 20Y6 Net income $1,504,000 $2,383,000 Preferred dividends $40,000 $40,000 Average number of common shares outstanding 80,000 shares 110,000 shares a. Determine the earnings per share for 20Y5 and 20Y6. Round to two decimal places. 2015 20Y6 Earnings per Share b. Is the change in the earnings per share from 20Y5 to 20Y6 favorable or unfavorable?

Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter10: Stockholder's Equity
Section: Chapter Questions
Problem 94.4C
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Earnings per share
Financial statement data for the years 20Y5 and 20Y6 for Black Bull Inc. follow:
20Y5
20Y6
Net income
$1,504,000
$2,383,000
Preferred dividends
$40,000
$40,000
Average number of common shares outstanding
80,000 shares
110,000 shares
a. Determine the earnings per share for 20Y5 and 20Y6. Round to two decimal places.
2015
20Y6
Earnings per Share
b. Is the change in the earnings per share from 20Y5 to 20Y6 favorable or unfavorable?
Transcribed Image Text:eBook Earnings per share Financial statement data for the years 20Y5 and 20Y6 for Black Bull Inc. follow: 20Y5 20Y6 Net income $1,504,000 $2,383,000 Preferred dividends $40,000 $40,000 Average number of common shares outstanding 80,000 shares 110,000 shares a. Determine the earnings per share for 20Y5 and 20Y6. Round to two decimal places. 2015 20Y6 Earnings per Share b. Is the change in the earnings per share from 20Y5 to 20Y6 favorable or unfavorable?
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