Question

Suppose the following information is available for Callaway Golf Company for the years 2022 and 2021. (Dollars are in thousands, except share information.) 2022 2021 Net sales $ 1,121,000 $ 1,128,400 Net income (loss) 76,329 61,171 Total assets 855,338 838,078 Share information Shares outstanding at year-end 68,500,000 70,280,000 Preferred dividends 0 0 There were 77,120,000 shares outstanding What was the company's earnings per share for each year?

Answer 1

Answer:

EPS

2021   $0.00083 per share or 0.083 cents per share

2020  $0.0011 per share or 0.11 cents per share

Explanation:

Share outstanding at the end of 2020 = 77,120,000 shares

                                                         2022                 2021

Net sales                                       $1,121,000        $1,128,400

Net income (loss)                          $76,329           $61,171

Total assets                                   $855,338        $838,078

Shares outstanding at year-end   68,500,000    70,280,000

Average outstanding share          69,390,000    73,700,000

Earning per share                          $0.0011           $0.00083

Working:

Earning Per share = Net income / Average Number of share

2021

Earning Per share = $61,171 / 73,700,000 = $0.00083 = 0.083 cents

2022

Earning Per share = $76,329 / 69,390,000 = $0.0011 = 0.11 cents