Accounting class problem. Earning per share ratio?

Question

The only information given about a company.

Year 1. 2004 2. 2003

Net sales 1. $934,564 2. $814,032

Net Income (loss) 1. (10,103) 2. 45,523

Total Asses ts 1. 735,737 2. 748,566

Share Information:

Shares outstanding at year end 1. 69,111,349 2. 66,862,850

PPreferred dived ends 1. -0- 2. -0-

There were 65,676,326 shares outstanding at the end of 2002.

Problems:

1. What was the company's earning per share for each year?

The solving equation is: Net income minus preferred divedends then divide that total with the total of shares outstanding average so (shares outstanding year beginning plus shares outstanding year end) divide that by 2 to get average)

Answer 1

You don't have to adjust net income for preferred dividends since there were no preferred dividends.

Year 1

EPS = (10,103,000)/67,987,100 = (0.1486) loss per share

Year 2

EPS = 45,523,000/66,269,588 = 0.6869 earnings per share

I presume your dollar values are in thousands.