Numbers below have already been calculated just need help on how to answer the question for it part.

Pampa Agriculture Supply

Selected Comparative Financial Statement Information

Pampa Agriculture Supply has one serious local competitor:Spearman Distributors, Inc.Earnings per share (EPS) has consistently increased for both organizations.The management of Pampa is uncertain, however, if the underlying factors driving the increases in EPS are the same across both organizations.Thus, they are interested in financial analysis that goes beyond the surface level.In that regard the following information has been gathered for both Pampa and Spearman:

Part one:

For the Year Ended December 31, 2015

Pampa Spearman

Sales Revenue $24,000,000 $25,500,000

Operating Expenses $18,720,000 $19,380,000

Earnings before interest and taxes (EBIT) $5,280,000 $6,120,000

Interest expense $750,000 $1,400,000

Earnings before taxes (EBT) $4,530,000 $4,720,000

Tax expense (30% of EBT) $1,359,000 $1,416,000

Net income $3,171,000 $3,304,000

Earnings per share (EPS) $2.114 $2.065

For the Year Ended December 31, 2016

Pampa Spearman

Sales Revenue $25,920,000 $26,010,000

Operating Expenses $18,196,000 $19,768,000

Earnings before interest and taxes (EBIT) $7,724,000 $6,242,000

Interest expense $750,000 $1,800,000

Earnings before taxes (EBT) $6,974,000 $4,442,000

Tax expense (30% of EBT) $2,092,200 $1,332,6000

Net income $4,881,800 $3,109,400

Earnings per share (EPS) $3.255 $3.109

By how much did EPS increase from the year of 2015 to the year of 2016?Use EPS from 2015 as the denominator in your computation.

Pampa Spearman

3.255-2.114 3.109-2.065

2.114 2.065

=54.0% =50.6%

1. Focusing exclusively on EPS, which company improved the most from 2015 to 2016?
2. What are the dangers of focusing on a single, or several, summary measures when evaluating a company?
3. Given your answer to the above question, why do you think a relative handful of summary measures continue to receive extensive attention?
4. What does your answer to the above question reveal about management of companies, financial analysts, and the investing public?

Part 2:

Calculate the percentage change in each of the following items from the year of 2015 to the year of 2016.Use 2015 amounts in the denominators of your computations.

Pampa Spearman

Sales Revenue 25,920,000-24,000,000 26,010,000-25,500,000

24,000,000 25,500,000

=8% =2%

Operating Expenses 18,720,000-18,196,000 19,768,000-19,380,000

18,196,000 19,380,000

=2.9% =2.0%

Earnings before interest and taxes (EBIT) 7,724,000-5,280,000 6,242,000-6,120,000

5,280,000 6,120,000

=46.3% =2.0%

Interest expense 750,000-750,000 1,800,000-1,400,000

750,000 1,400,000

=0% =28.6%

Earnings before taxes (EBT) 6,974,000-4,530,000 4,720,000-4,442,000

4,530,000 4,442,000

=54.0% =6.30%

Tax expense (30% of EBT) 2,092,200-1,359,000 1,416,000-1,323,600

1,359,000 1,323,600

=54.0% =6.30%

Net income 4,881,800-3,171,000 3,304,000-3,109,40

3,171,000 3,109,400

=54.0% =6.26%

Earnings per share (EPS) 3.255-2.114 3.109-2.065

2.114 2.065

=54.0% =50.6%

What was the weighted average number of common shares outstanding for the year of 2015?

Pampa Spearman

3,171,000 3,304,000

2.114 2.065

=1,500,000 =1,600,000

For the year of 2016?(Round to the nearest thousand shares.)

Pampa Spearman

4,881,800 3,109,400

3.255 3.109

=1,499,785 =1,000,129

1. Looking more broadly at all of the above items, which company improved the most from 2015 to 2016?
2. What primary factor explains the growth in Pampa's EPS from 2015 to 2016?
3. Was Pampa's management primarily focused on operating, investing or financing activities in 2016?
4. What primary factor explains the growth in Spearman's EPS from 2015 to 2016?
5. Was Spearman's management primarily focused on operating, investing or financing activities in 2016?
6. Which company represents the best building block for constructing a growing, thriving, prosperous economy?

In light of the above, how can the monetary policies of a nation - policies intended to promote a growing, thriving, prosperous economy - have an untended, opposite effect?Remember here that the interest rate is a price, and economic agents adjust their behaviors in response to price changes.

Depending on how clear and concise your analysis is, as a guideline, addressing the above questions.This is not an exercise in English literature.The, outline formats, section headings, tables and such are both allowed and encouraged.Fix this analysis as if it were to be distributed to a committee where you work that has been charged with evaluating this company.