The managerial accountant at Megaton Company reported no preferred dividends paid in 2013 and 2014; and, there were 20,000 shares of outstanding stock at the end of 2013 and 2014. The managerial accountant reported that net income in 2014 was $95,000 and the value of common stock at the end of the year was $28.85 per share. The managerial accountant reported that net income in 2013 was $65,000 and the value of common stock at the end of the year was $12.95 per share.
Compute the earnings per share (EPS)at Megaton Company in 2013 and in 2014. Did the EPS increase or decrease in 2014? Should a managerial accountant strive to achieve an increase in EPS or a decrease in EPS? What can a decrease in EPS indicate?

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The Answer of The managerial accountant at Megaton Company reported no preferred dividends paid in 2013 and 2014; and, there were 20,000 shares of outstanding stock at the end of 2013 and 2014. The managerial accountant reported that net income in 2014 was $95,000 and the value of common stock at the end of the year was $28.85 per share. The managerial accountant reported that net income in 2013 was $65,000 and the value of common stock at the end of the year was $12.95 per share.
Compute the earnings per share (EPS)at Megaton Company in 2013 and in 2014. Did the EPS increase or decrease in 2014? Should a managerial accountant strive to achieve an increase in EPS or a decrease in EPS? What can a decrease in EPS indicate?

The Managerial Accountant at Megaton Company Reported No Preferred Dividends