Financial statement data for the years ended December 31 for Black Bull Inc. follows:
____________________________________________________2016_________________2015
Net income........................................................................$2,485,700..............$1,538,000
Preferred dividends........................................................$50,000..................$50,000
Average number of common shares outstanding .............115,000 shares ..........80,000 shares
a. Determine the earnings per share for 2016 and 2015.
b. Does the change in the earnings per share from 2015 to 2016 indicate a favorable or an unfavorable trend?