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Dakota Inc. and Jersey&Company; are two large companies that manufacture and sel

ID: 2568334 • Letter: D

Question

Dakota Inc. and Jersey&Company; are two large companies that manufacture and sell equipment used in the construction, mining, agricultural, and forestry companies reported the following data (in millions) for two recent years: Dakota Jersey Year 2 Year 1 Year 2 Year 1 $2,122 $,715 $1,920 $3,24:2 Net income Average number of common shares outstanding $94 a. Determine the earnings per share in Year 2 and Year 1 for each company. Round your answers to two decimal places. 599 334 Year 2 Year 1 Dakota ersey b. Evaluate the relative profitability of the two companies. per share per share per share per share -earnings per share for Year 1 and Year 2 are higher than . However, from Year 1 to Year 2, the earnings per share for both from Year 1 to Year 2. Overall, Y appears to be the companies more profitable company. . The slowing world economy contributed to the

Explanation / Answer

Company

Dakota

Company

Jersey

Year

2

1

Year

2

1

Net income

2122

3715

Net income

1920

3242

average no of common share outstanding

594

599

average no of common share outstanding

334

363

EPS = net income/average no of common share outstanding]

3.572391

6.202003

EPS = net income/average no of common share outstanding]

5.748503

8.931129

Fill in the blank- numbered as 1,2,3, as in the sequence

1- Jersey 2-Dakota 3- has declined 4- decreased earning per share, 5-Jersey

Company

Dakota

Company

Jersey

Year

2

1

Year

2

1

Net income

2122

3715

Net income

1920

3242

average no of common share outstanding

594

599

average no of common share outstanding

334

363

EPS = net income/average no of common share outstanding]

3.572391

6.202003

EPS = net income/average no of common share outstanding]

5.748503

8.931129

Fill in the blank- numbered as 1,2,3, as in the sequence

1- Jersey 2-Dakota 3- has declined 4- decreased earning per share, 5-Jersey