Financial statement data for the years ended December 31 for Dovetail Corporation follow: ___________________________ 20Y3 _ 20Y2

Question:

Financial statement data for the years ended December 31 for Dovetail follow:
_________________________________________ 20Y3 _______________ 20Y2
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 20Y3 and 20Y2.
b. Does the change in the earnings per share from 20Y2 to 20Y3 indicate a favorable or 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...