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.)
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
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