Koala Inc. had 210,000 common shares outstanding on December 31, 2013. During 2014, the company issued 8,000

Question:

Koala Inc. had 210,000 common shares outstanding on December 31, 2013. During 2014, the company issued 8,000 shares on May 1 and retired 14,000 shares on October 31. For 2014, the company reported net income of $229,690 after a loss from discontinued operations of $40,600 (net of tax).
Instructions
(a) Calculate earnings per share for 2014 as it should be reported to shareholders.
(b) Assume that Koala Inc. issued a 3-for-1 stock split on January 31, 2015, and that the company's for the year ended December 31, 2014, were issued on February 15, 2015. Calculate earnings per share for 2014 as it should be reported to shareholders.
(c) Discuss why Koala Inc.'s reporting of earnings per share is useful to financial statement users.
(d) Is it possible for a to have a simple one fiscal year and a complex in another fiscal year? If yes, how could this happen?
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