Question

2017 2016 Net sales $ 1,110,000 $ 1,116,500 Net income (loss) 62,000 50,700 Total assets 855,338 838,078 Share information Shares outstanding at year-end 64,507,000 66,282,000 Preferred dividends 0 0 There were 73,139,000 shares outstanding at the end of 2015. (a) What was the company’s earnings per share for each year? (Round answers to 2 decimal places, e.g. 15.25.) 2017 : $enter the company’s earnings per share for 2017 in dollars rounded to 2 decimal placesEntry field with incorrect answer now contains modified data .95 2016 : $enter the company’s earnings per share for 2016 in dollars rounded to 2 decimal placesEntry field with incorrect answer -67.62

Answer 1

Answer:

Earnings per share 2016 = $0.00073

Earnings per share 2017 = $0.00095

Explanation:

Earnings per share relates to a period and not for a particular date, therefore, it is computed based on the average number of shares for the period.

Net income for each year

2017 = $62,000

2016 = $50,700

Shares at the end of year

2017 = 64,507,000

2016 = 66,282,000

2015 = 73,139,000

Average shares of 2016 = $\frac{(73,139,000 + 66,282,000)}{2} = 69,710,500$

Average shares of 2017 = $\frac{(64,507,000 + 66,282,000)}{2}$ = 65,394,500

Earning per share for 2016 = $\frac{50,700}{69,710,500} = 0.00073$

Earnings per share for 2017 = $\frac{62,000}{65,394,500} = 0.00095$