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Determine the earnings per share

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Question - Earnings per share - Financial statement data for the years 20Y5 and 20Y6 for Black Bull Inc. follow:

20Y5 20Y6

Net income $1,741,000 $2,584,000

Preferred dividends $40,000 $40,000

Average number of common shares outstanding 90,000 shares 120,000 shares

Required -

a. Determine the earnings per share for 20Y5 and 20Y6.

b. Is the change in the earnings per share from 20Y5 to 20Y6 favorable or unfavorable?

Reference no: EM132786359

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