Ramca Corp.’s accounting year ends on 31 December. During the three most recent years, its common shares outstanding changed as follows:

Required:
1. For purposes of calculating EPS at the end of each year, for each year independently, determine the weighted average number of shares outstanding.
2. For purposes of calculating EPS at the end of 20X7, when comparative statements are being prepared on a three-year basis, determine the weighted average number of shares outstanding for each year.
3. Compute EPS for each year based on computations in requirement 2. There were no preferred shares outstanding.

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Shares outstanding, 1 January Shares sold, 1 April 20X5 25% stock dividend, 1 July 20X6 2-for-1 stock split, 1 July 20X7 Shares sold, 1 October 20X7 Shares outstanding, 31 December Net earnings and comprehensive income 20X7 187,500 187,500 60,000 435,000 $533,250 20X6 150,000 37,500 187,500 $406,600 20X5 90,000 60,000 150,000 $331,500