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		$ 1,113,000		$ 1,119,100
Net income (loss)		76,351		63,425
Total assets		855,338		838,078
Share information
Shares outstanding at year-end		68,500,000		70,320,000
Preferred dividends		0		0

Question 3 View Policies Show Attempt History Current Attempt in Progress Your answer is incorrect. 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 $1.113,000 $1,119,100 Net sales Net income (loss) 76,351 63,425 Total assets 855,338 838,078 Share information Shares outstanding at year-end 68,500,000 70,320,000 Preferred dividends There were 77,180,000 shares outstanding at the end of 2020. What was the company's earnings per share for each year? (Round answers to 2 decimal places, eg. 15.25.) 2022: $ 2021: $ eTextbook and Media Attemnts

Answer 1

Answer:

Earnings per share (EPS) = It is the the relationship between net income and average shares outstanding.

Earnings per share = Net income / Average shares outstanding

2022:

Average shares = (68,500,000 + 70,320,000) / 2 = 69,410,000

Earnings per share = 76,351,000 / 69,410,000

= $1.1 per share

2021:

Average shares = (77,180,000 + 70,320,000) / 2 = 73,750,000

Earnings per share = 63,425,000 / 73,750,000

= $0.86 per share

Hence,

EPS for year:

2022 : $1.1 Per share

2021 : $0.86 Per share