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Carpets R Us had earnings after taxes of $800,000 in the year 2014 with 200,000 shares of stock outstanding. On January 1, 2015, the firm issued 50,000 new shares. Because of the proceeds from these new shares and other operating improvements, earnings after taxes increased by 30 percent.
a. Compute earnings per share for the year 2014.
b. Compute earnings per share for the year 2015.
Tulley Appliances, projects next year's sales to be $20 million. Current sales are at $15 million based on current assets of $5 million and fixed assets of $5 million.
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