The 2017 annual report of Software City, Inc., included the following comparative summary of earnings per share over the last three years.
2017 2016 2015
Earnings per share.................................................$3.15............$2.40............$1.64
In 2018, Software City, Inc., declared and distributed a 2-for-1 stock split. Following this distribution of stock, the company reported earnings per share of $1.88 for 2018.
a. Prepare a three-year schedule similar to the one given, but compare earnings per share during the years 2018, 2017, and 2016.
b. In preparing your schedule, which figure (or figures) did you have to restate? Why? Explain the logic behind your computation.