Portillo Inc. uses a calendar year for financial reporting.

The company is authorized to issue 9,000,000 R$10 par ordinary shares. At no time has Portillo issued any potentially dilutive securities. Listed below is a summary of Portillo’s ordinary share activities.

Instructions

(a) Compute the weighted-average number of ordinary shares used in computing earnings per ordinary share for 2015 on the 2016 comparative income statement.

(b) Compute the weighted-average number of ordinary shares used in computing earnings per ordinary share for 2016 on the 2016 comparative income statement.

(c) Compute the weighted-average number of ordinary shares to be used in computing earnings per ordinary share for 2016 on the 2017 comparative income statement.

(d) Compute the weighted-average number of ordinary shares to be used in computing earnings per ordinary share for 2017 on the 2017 comparative income statement.

Transcribed Image Text:

1. Number of ordinary shares issued and outstanding at December 31, 2014 2. Shares issued as a result of a 10% share dividend on September 30, 2015 3. Shares issued for cash on March 31, 2016 Number of ordinary shares issued and outstanding at December 31, 2016 4. A 2-for-1 share split of Portillo's ordinary shares took place on March 31, 2017 2,400,000 240,000 2,000,000 4,640,000