Financial statement data for the years ended December 31 for Dovetail Corporation follows: ___________________2016_2015 Net income............................................$448,750..........................$376,000 Preferred

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 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?

Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...