Question: Financial statement data for the years ended December 31 for Dovetail Corporation follows: _______________________________________2016_____________________2015 Net income............................................$448,750..........................$376,000 Preferred dividends...................................$40,000.............................$40,000 Average number of common shares outstanding 75,000

Financial statement data for the years ended December 31 for Dovetail Corporation follows:

_______________________________________2016_____________________2015

Net income............................................$448,750..........................$376,000

Preferred dividends...................................$40,000.............................$40,000

Average number of common shares outstanding 75,000 shares..............60,000 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?

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