Suppose the following information is available for Callaway Golf Company for the

Question

Suppose the following information is available for Callaway Golf Company for the years 2017 and 2016. (Dollars are in thousands, except share information.)

There were 73,139,000 shares outstanding at the end of 2015.

(a)

What was the company’s earnings per share for each year? (Round answers to 2 decimal places, e.g. 15.25.)

2017 2016 Net sales $ 1,114,000 $ 1,120,800 Net income (loss) 62,200 52,200 Total assets 855,338 838,078 Share information Shares outstanding at year-end 64,507,000 66,282,000 Preferred dividends 0 0

Explanation / Answer

(a) 2017:

Earnings per share = Net income / Average number of shares outstanding = $62,200,000 / [(64,507,000 + 66,282,000) / 2] = $0.95

2016:

Earnings per share = Net income / Average number of shares outstanding = $52,200,000 / [(66,282,000 + 73,139,000) / 2] = $0.75

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