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		$ 1,114,000		$ 1,120,100
Net income (loss)		87,510		61,820
Total assets		855,338		838,078
Share information
Shares outstanding at year-end		72,000,000		73,850,000
Preferred dividends		0		0

There were 80,700,000 shares outstanding at the end of 2020.

(a)

What was the company’s earnings per share for each year? (Round answers to 2 decimal places, e.g. 15.25.)

2022 :		$enter the company’s earnings per share for 2017 in dollars rounded to 2 decimal places
2021 :		$enter the company’s earnings per share for 2016 in dollars rounded to 2 decimal places

Answer 1

Answer -

Company’s Earnings Per Share

Year	Explanation	Earnings Per Share
2022	Refer working note - (2)	$1.2
2021	Refer working note - (1)	$0.8

.

# Working note - (1) - Computation of Earnings Per Share for the year 2021 -

	Particulars	Explanation
I.	Net income	Given in question	$61820000
II.	Shares outstanding at the end of 2020	Given in question	80700000 shares
III.	Shares outstanding at the end of 2021	Given in question	73850000 shares
IV.	Average number of shares outstanding	(II + III) / 2	77275000 shares
Earnings Per Share		I / IV	$0.8

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# Working note - (2) - Computation of Earnings Per Share for the year 2022 -

	Particulars	Explanation
I.	Net income	Given in question	$87510000
II.	Shares outstanding at the end of 2021	Given in question	73850000 shares
III.	Shares outstanding at the end of 2022	Given in question	72000000 shares
IV.	Average number of shares outstanding	(II + III) / 2	72925000 shares
Earnings Per Share		I / IV	$1.2