PE 13-8B Earnings per share
Financial statement data for years ending December 31 for Duffner Company are shown below.
| 2012 | 2011 | |
| Net income | $117,000 | $104,000 |
| Preferred dividends | $18,000 | $18,000 |
| Average number of common shares outstanding | 50,000 shares | 40,000 shares |
Average number of common shares outstanding 120,000 shares 90,000 shares
a. Determine the earnings per share for 2012 and 2011.
b. Does the change in the earnings per share from 2011 to 2012 indicate a favorable or an unfavorable trend?
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