Question

Suppose the following information is available for Callaway Golf Company for the years 2022 and 2021....

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 $ 1,110,000 $ 1,116,000 Net income (loss) 83,310 62,713 Total assets 855,338 838,078 Share information Shares outstanding at year-end 68,500,000 70,350,000 Preferred dividends 0 0 There were 77,210,000 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.)

Homework Answers

Answer #1

Company’s earnings per share for the year 2022

Earnings per share = Net Income available to common stockholders / Average number of shares outstanding

= [Net Income – Preferred Dividends] / Average number of shares outstanding

= [$83,310,000 - $0] / [(68,500,000 Shares + 70,350,000 Shares)/2]

= $83,310,000 / 69,425,000 Shares

= $1.20 per share

Company’s earnings per share for the year 2021

Earnings per share = Net Income available to common stockholders / Average number of shares outstanding

= [Net Income – Preferred Dividends] / Average number of shares outstanding

= [$62,713,000 - $0] / [(70,350,000 Shares + 77,210,000 Shares)/2]

= $62,713,000 / 73,780,000 Shares

= $0.85 per share

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
The following information is available for Tamarisk, Inc. for three recent fiscal years. 2022 2021 2020...
The following information is available for Tamarisk, Inc. for three recent fiscal years. 2022 2021 2020 Inventory $568,000 $578,000 $345,000 Net sales 1,910,000 1,775,000 1,370,000 Cost of goods sold 1,661,700 1,384,500 954,000 (a) Calculate the inventory turnover, days in inventory, and gross profit rate for 2022 and 2021. (Round inventory turnover to 1 decimal place, e.g. 5.2, days in inventory to 0 decimal places, e.g. 125 and gross profit rate to 1 decimal place, e.g. 5.2%.) 2022 2021 Inventory Turnover...
The following information is available for Splish Brothers Inc. for three recent fiscal years. 2022 2021...
The following information is available for Splish Brothers Inc. for three recent fiscal years. 2022 2021 2020 Inventory $580,000 $590,000 $320,000 Net sales 1,950,000 1,750,000 1,350,000 Cost of goods sold 1,462,500 1,228,500 938,000 (a) Calculate the inventory turnover, days in inventory, and gross profit rate for 2022 and 2021. (Round inventory turnover to 1 decimal place, e.g. 5.2, days in inventory to 0 decimal places, e.g. 125 and gross profit rate to 1 decimal place, e.g. 5.2%.) 2022 2021 Inventory...
Sheridan Company has $1,200,000 in assets and $1,200,000 in stockholders’ equity, with 42,200 shares outstanding the...
Sheridan Company has $1,200,000 in assets and $1,200,000 in stockholders’ equity, with 42,200 shares outstanding the entire year. It has a return on assets of 15%. During 2021, it had net income of $180,000. On January 1, 2022, it issued $375,000 in debt at 4% and immediately repurchased 21,100 shares for $375,000. Management expected that, had it not issued the debt, it would have had net income of $180,000 in 2022. Assume the company pays dividends on common stock equal...
The following information is available for Bramble Corp. for three recent fiscal years. 2022 2021 2020...
The following information is available for Bramble Corp. for three recent fiscal years. 2022 2021 2020 Inventory $530,000 $562,000 $330,000 Net sales 1,885,000 1,784,000 1,315,000 Cost of goods sold 1,583,400 1,338,000 955,000 (a) Calculate the inventory turnover, days in inventory, and gross profit rate for 2022 and 2021. (Round inventory turnover to 1 decimal place, e.g. 5.2, days in inventory to 0 decimal places, e.g. 125 and gross profit rate to 1 decimal place, e.g. 5.2%.) 2022 2021 Inventory Turnover...
Suppose this information is available for PepsiCo, Inc. for 2020, 2021, and 2022. (in millions) 2020...
Suppose this information is available for PepsiCo, Inc. for 2020, 2021, and 2022. (in millions) 2020 2021 2022 Beginning inventory $2,000 $2,400 $2,700 Ending inventory 2,400 2,700 2,800 Cost of goods sold 20,680 23,715 23,650 Sales revenue 38,800 42,500 42,460 Calculate the inventory turnover for 2020, 2021, and 2022. (Round inventory turnover to 1 decimal place, e.g. 5.1.) 2020 2021 2022 Inventory turnover enter an inventory turnover times enter an inventory turnover times enter an inventory turnover times eTextbook and...
Hello, On December 31, 2021, Shamrock Ltd had 200,000 weighted average common shares outstanding and 58,000...
Hello, On December 31, 2021, Shamrock Ltd had 200,000 weighted average common shares outstanding and 58,000 preferred shares outstanding. Shamrock’s preferred shares are $3, cumulative preferred shares. There were no changes to the number of preferred shares outstanding during the year. No dividends were declared or paid in 2021 or 2020, although dividends were paid on preferred shares in 2019. Shamrock had a net income of $2,714,000 for the year ended December 31, 2021. Calculate Shamrock’s basic earnings per share....
Exercise 6-11 a-c Suppose this information is available for PepsiCo, Inc. for 2020, 2021, and 2022....
Exercise 6-11 a-c Suppose this information is available for PepsiCo, Inc. for 2020, 2021, and 2022. (in millions) 2020 2021 2022 Beginning inventory $2,100 $2,600 $2,900 Ending inventory 2,600 2,900 3,000 Cost of goods sold 22,795 26,400 26,255 Sales revenue 41,000 44,000 43,980 Calculate the inventory turnover for 2020, 2021, and 2022. (Round inventory turnover to 1 decimal place, e.g. 5.1.) 2020 2021 2022 Inventory turnover enter an inventory turnover times enter an inventory turnover times enter an inventory turnover...
Information from the financial statements of Ames Fabricators, Inc., included the following:    December 31 2021...
Information from the financial statements of Ames Fabricators, Inc., included the following:    December 31 2021 2020 Common shares 100,000 100,000 Convertible preferred shares (convertible into 78,000 shares of common) 30,000 30,000 8% convertible bonds (convertible into 30,000 shares of common) $ 1,000,000 $ 1,000,000 Ames’s net income for the year ended December 31, 2021, is $800,000. The income tax rate is 25%. Ames paid dividends of $5 per share on its preferred stock during 2021. Required: Compute basic and...
Information from the financial statements of Ames Fabricators, Inc., included the following:    December 31 2021...
Information from the financial statements of Ames Fabricators, Inc., included the following:    December 31 2021 2020 Common shares 100,000 100,000 Convertible preferred shares (convertible into 44,000 shares of common) 15,600 15,600 8% convertible bonds (convertible into 30,000 shares of common) $ 1,000,000 $ 1,000,000 Ames’s net income for the year ended December 31, 2021, is $560,000. The income tax rate is 25%. Ames paid dividends of $5 per share on its preferred stock during 2021. Required: Compute basic and...
Information from the financial statements of Ames Fabricators, Inc., included the following:    December 31 2021...
Information from the financial statements of Ames Fabricators, Inc., included the following:    December 31 2021 2020 Common shares 100,000 100,000 Convertible preferred shares (convertible into 80,000 shares of common) 31,200 31,200 8% convertible bonds (convertible into 30,000 shares of common) $ 1,000,000 $ 1,000,000 Ames’s net income for the year ended December 31, 2021, is $820,000. The income tax rate is 25%. Ames paid dividends of $5 per share on its preferred stock during 2021. Required: Compute basic and...