Determine the earnings per share

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Problem: Financial statement data for the years ended December 31, 2015-2014 for Maria Corp. are shown below:

 

2015

2014

Net Income

$3,000,000

$2,700,000

Preferred dividends

$100,000

$100,000

Average number of common shares outstanding

115,000 shares

80,000 shares

a) Determine the earnings per share for 2015 and 2014.

b) Does the change in the earnings per share from 2014 to 2015 indicate a favorable or an unfavorable trend?

Reference no: EM132060864

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