(Weighted-Average Number of Shares) Newton Inc. uses a calendar year for financial reporting.

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

Instructions

(a) Compute the weighted-average number of common shares used in computing earnings per common share for 2006 on the 2007 comparative income statement.

(b) Compute the weighted-average number of common shares used in computing earnings per common share for 2007 on the 2007 comparative income statement.

(c) Compute the weighted-average number of common shares to be used in computing earnings per common share for 2007 on the 2008 comparative income statement.

(d) Compute the weighted-average number of common shares to be used in computing earnings per common share for 2008 on the 2008 comparative income statement.

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1. Number of common shares issued and outstanding at December 31, 2005 2. Shares issued as a result of a 10% stock dividend on September 30, 2006 3. Shares issued for cash on March 31, 2007 Number of common shares issued and outstanding at December 31, 2007 4. A 2-for-1 stock split of Newton's common stock took place on March 31, 2008. 2,000,000 200,000 2,000,000 4,200,000