Burns Company reported net income of $600,000 for 2021. On January 1, 2021 the company had100, 000 shares of common stock outstanding. On April 1, 2021, the company purchased 10,000 shares of common stock as treasury stock. On July 1, 2021, the company reissued 5,000 of its treasury stock. On October 1, 2021, the company issued 25,000 new shares of common stock. On December 1, 2021, the company’s common stock split 2 for 1. In addition Burns Company reported the following on its financial Statements.

Convertible preferred stock, $100 Par, 10%, cumulative                            $1,000,000

           Each $100 par Preferred stock in convertible into 5 shares of common stock

Preferred Stock, $100 par, 8%, cumulative                                                      500,000

12% Convertible bonds, issued April 1, 2021, at par                                  2,000,000

           Each $1,000 bond is convertible into 50 shares of common stock

8% convertible Bonds, issued March 30, 2009 at Par                                 1,000,000

           Each $1,000 bond is convertible into 40 shares of common stock

100,000 Stock option series A, issued February 15, 2008 with exercise price of $30

50,000 Stock Options Series B, issued July 1, 2021 with exercise price of $45.

Burns Company’s tax rate for 2021 was 40% and its common stock had and average market price of $40 per share for 2021.

REQUIRED:

a.        Calculate the weighted average number of common shares outstanding for Burns            Company for 2021.

b.        Calculate the Basic Earnings Per Share for Burns Company for 2021.

c.        Calculate the Dilution Index (incremental Per Share Effect) for each dilutive security and indicate their order of entry into calculation of diluted EPS.

d.        Calculate the Diluted Earnings Per Share for Burns Company for 2021.