Based on the following 2022 information provided by EPES INC., calculated basic and diluted EPS.

1/1/22: Common shares outstanding= 1,000,000

3/1/22: Sold additional 100,000 common shares

7/1/22: Declared a 20% stock dividend

9/1/22: purchased 150,000 shares of treasury stock

Culmative preferred stock outstanding, 1/1/22: 50,000 shares of 10% $50 par

Convertible Securities:

Culmative preferred stock (above).

Each share is convertible into 3 shares of common stock.

1,000,000 face value, 8% bonds, convertible into 100,000 of common stock.

Stock options for the purchase of 150,000 shares of common stock at $40 a share.

Additional information:

2022 net income= $2,650,000

Income tax rate= 20%

Avg 2022 market price of common stock= $50/share

1/1/22- preferred dividends in arrears= $300,000

No preferred dividends were paid in 2022

PLEASE EXPLAIN EVERY STEP VERY, VERY CLEARLY AS I DONT UNDERSTAND HOW TO DO THIS QUESTION. THANKS!!