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e File Edit View History Bookmarks People Tab Window Help P Perusalt Suube WPLUS X 5 Soo Resume * www.wileyplus x Fle edugen.wileyplus.com/edugen/student/mainfr.uni Dashboard M S Stefan je sportsc000 - Open Assignment baboyssoccer.com RESOURCES 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 info se 2-2 Net sales Net income (loss) Total assets 2017 $1,112,204 66,175 855.338 2016 $1,124,591 54,587 838,078 wits by Study Share information Shares outstanding at year-end Preferred dividends 64,507,000 66,252.000 There were 73.139,000 shares outstanding at the end of 2015 What was the company's earnings per share for each year (Round answ 2017 2016: Click if you would like to show Work for this questioni Deen Show Work VIDEO SHARE cement | Privacy Policy | 2000-2020 John Wiley . A t Reserved. A Division of Wessons Inc Ons a 1003260 ÇOW@ODNO

Answer 1

FORMULAS USED IN SOLUTION 1 EARNING PER SHARE = NET INCOME - PREFERRED DIVIDENDS WEIGHTED AVERAGE COMMON SHARES OUTSTANDING 2 WEIGHTED AVERAGE SHARES OUTSTANDING = NO. OF SHARES OUTSTANDING AT THE YEAR END + NO. OF SHARES OUTSTANDING AT THE YEAR BEGINNING 2017 6,45,07,000 6,62,82,000 2016 6,62,82,000 7,31,39,000 PARTICULARS NO. OF SHARES OUTSTANDING AT THE YEAR END NO. OF SHARES OUTSTANDING AT THE YEAR BEGINNING WEIGHTED AVERAGE SHARES OUTSTANDING(USING FORMULA NO.2) (A) NET INCOME (IN $) (B) EARNING PER SHARE(USING FORMULA NUMBER NO. 1) (B/A 6,53,94,500 6,61,76,000 1.01 6,97,10,500 5,45,87,000 0.78