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Earnings Per Share Financial statement data for the years ended December 31 for Cottontop Corporation follow: Net income Preferred dividends Average number of common shares outstanding 20Y3 $1,411,000 $215,000 20Y2 $1,212,750 $215,000 80,000 shares 65,000 shares a. Determine the earnings per share for 20Y3 and 20Y2. Round your answers to two decimal places. 20Y3 $ 20Y2 $ per share per share b. Does the change in the earnings per share from 20Y2 to 20Y3 indicate a favorable or unfavorable trend?

Earnings Per Share Financial statement data for the years ended December 31 for Cottontop Corporation follow: Net income Preferred dividends Average number of common shares outstanding 20Y3 $1,411,000 $215,000 20Y2 $1,212,750 $215,000 80,000 shares 65,000 shares a. Determine the earnings per share for 20Y3 and 20Y2. Round your answers to two decimal places. 20Y3 $ 20Y2 $ per share per share b. Does the change in the earnings per share from 20Y2 to 20Y3 indicate a favorable or unfavorable trend?

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Earnings Per Share Financial statement data for the years ended December 31 for Cottontop Corporation follow: Net income Preferred dividends Average number of common shares outstanding 20Y3 $1,411,000 $215,000 80,000 shares 20Y2 $1,212,750 $215,000 65,000 shares a. Determine the earnings per share for 20Y3 and 20Y2. Round your answers to two decimal places. 20Y3 $ 20Y2 $ per share per share b. Does the change in the earnings per share from 20Y2 to 20Y3 indicate a favorable or unfavorable trend?
Transcribed Image Text:Earnings Per Share Financial statement data for the years ended December 31 for Cottontop Corporation follow: Net income Preferred dividends Average number of common shares outstanding 20Y3 $1,411,000 $215,000 80,000 shares 20Y2 $1,212,750 $215,000 65,000 shares a. Determine the earnings per share for 20Y3 and 20Y2. Round your answers to two decimal places. 20Y3 $ 20Y2 $ per share per share b. Does the change in the earnings per share from 20Y2 to 20Y3 indicate a favorable or unfavorable trend?
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