Problem: Financial statement data for the years ended December 31, 2015-2014 for Maria Corp. are shown below:
|
|
2015
|
2014
|
|
Net Income
|
$3,000,000
|
$2,700,000
|
|
Preferred dividends
|
$100,000
|
$100,000
|
|
Average number of common shares outstanding
|
115,000 shares
|
80,000 shares
|
a) Determine the earnings per share for 2015 and 2014.
b) Does the change in the earnings per share from 2014 to 2015 indicate a favorable or an unfavorable trend?