Lightfoot Inc., a software development firm, has stockoutstanding as follows: 10,000 shares of cumulative preferred 4% stock, $25 par, and 13,000 shares of $75 par common. During its first four years of operations, the following amounts were distributed as dividends: first year, $3,800; second year, $6,300; third year, $29,260; fourth year, $41,850.Calculate the dividends per share on each class of stock for each of the four years. Round all answers to two decimal places. If no dividends are paid in a given year, enter "0". 1st Year2nd Year3rd Year4th YearPreferred stock (dividend per share)$fill in the blank 1$fill in the blank 2$fill in the blank 3$fill in the blank 4Common stock (dividend per share) Earnings per shareFinancial statement data for the years 20Y5 and 20Y6 for Black Bull Inc. follow: 20Y520Y6Net income$1,715,000 $2,437,000 Preferred dividends$50,000 $50,000 Average number of common shares outstanding90,000shares110,000sharesDetermine the earnings per share for 20Y5 and 20Y6. Round to two decimal places. 20Y520Y6Earnings per Share$fill in the blank 1 $fill in the blank 2 Is the change in the earnings per share from 20Y5 to 20Y6 favorable or unfavorable?

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Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter15: Financial Statement Analysis

Section: Chapter Questions

Problem 55E: Rebert Inc. showed the following balances for last year: Reberts net income for last year was...

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Lightfoot Inc., a software development firm, has stockoutstanding as follows: 10,000 shares of cumulative preferred 4% stock, $25 par, and 13,000 shares of $75 par common. During its first four years of operations, the following amounts were distributed as dividends: first year, $3,800; second year, $6,300; third year, $29,260; fourth year, $41,850.

Calculate the dividends per share on each class of stock for each of the four years. Round all answers to two decimal places. If no dividends are paid in a given year, enter "0".

	1st Year	2nd Year	3rd Year	4th Year
Preferred stock (dividend per share)	$fill in the blank 1	$fill in the blank 2	$fill in the blank 3	$fill in the blank 4
Common stock (dividend per share)

Earnings per share

Financial statement data for the years 20Y5 and 20Y6 for Black Bull Inc. follow:

	20Y5	20Y6
Net income	$1,715,000		$2,437,000
Preferred dividends	$50,000		$50,000
Average number of common shares outstanding	90,000	shares	110,000	shares

Determine the earnings per share for 20Y5 and 20Y6. Round to two decimal places.

	20Y5	20Y6
Earnings per Share	$fill in the blank 1		$fill in the blank 2

Is the change in the earnings per share from 20Y5 to 20Y6 favorable or unfavorable?

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