Kimmel, Accounting, 6e Exercise 2-7 Suppose the following information is availab

Question

Kimmel, Accounting, 6e Exercise 2-7 Suppose the following information is available for Callaway Golf Company for the years 2017 and 2016. (Dollars are in thousands, except share information.) 2017 2016 $ 1,114,0001,120,400 56,700 838,078 Net sales Net income (loss) 66,800 855,338 Total assets Share information Shares outstanding at year-end 64,507,000 66,282,000 Preferred dividends There were 73,139,000 shares outstanding at the end of 2015 What was the company's earnings per share for each year? (Round answers to 2 decimal places, e.g. 15.25.) 2017: s 2016: Click if you would like to Show Work for this question: Open Show Work

Explanation / Answer

Solution:

2017: $1.02

2016: $0.81

Working:

Average common shares =(Beginning shares+Ending shares outstanding)/2

2017: (64,507,000 + 66,282,000) / 2 = 130,789,000/2 = 65,394,500

2016: (66,282,000 + 73,139,000) / 2 = 139,421,000/2 = 69,710,500

Earnings per share = (Net income - Preferred dividends) / Average common shares outstanding

2017: 66,800,000/65,394,500 = 1.02

2016: 56,700,000/69,710,500 = 0.81

Related Questions

Navigate

• Browse (All)
• Browse K
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.