Financial statement data for the years ended December 31 for Dovetail Corporation follows:2016 2015Net income $448,750 $376,000 Preferred dividends $40,000 $40,000 Average number of common shares outstanding 75,000 shares 60,000 sharesa. Determine the earnings per share for 2016 and 2015. Round your answers to two decimal places.2016 $ per share2015 $ per shareb. Does the change in the earnings per share from 2015 to 2016 indicate a favorable or an unfavorable trend?

The earnings per share for 2016 are $5.45 per share while the earnings per share for 2015 were $5.60 per share.

The earnings per share has fallen in 2016 as compared to 2015, thus there is an unfavorable trend.

Explanation:

Earning per share (EPS) is the amount of net income allocable to each share of common stock outstanding. It is a useful measure for investors as it tells them how much $ return a business in earning on every share of common stock. The earnings per share is calculated as follows,

Earnings per share = (Net Income - Preferred dividends) / Weighted average shares on common stock outstanding

The earnings per share for Dovetail is

2015 EPS = (376000 - 40000) / 60000    = $5.60 per share

2016 EPS = (448750 - 40000) 75000    = $5.45 per share

1   all nations face the problem of scarcity because there are limited resources and unlimited wants. nations do not have enough factors of production to produce everything that their population wants. entrepreneurial resources initiate businesses to make new goods and services; labor resources produce goods and services.

2 there are four factors of production: natural resources, labor resources, capital resources, and entrepreneurial resources. natural resources are raw materials from nature that are used to produce goods. trees, water, and grains are natural resources. some natural resources, such as wheat and cattle, are renewable

3 wants

things that you do not need to have in order to survive, but would like to have

needs

things that you must have in order to survive

goods

physical products

services

tasks that a business perform for customers

resources

items that people can use to make or obtain what they need or want

determine

to settle or decide by choice of alternatives or possiblities

4 i really dont know