Calculating EPS: Simple Capital Structure and 3 years

C-Bay Inc.'s accounting year ends on December 31. During the following three years, its common shares outstanding changed as follows.

	2022	2021	2020
Shares outstanding, January 1	435,000	348,000	290,000
Sales of shares, April 1, 2020			58,000
25% stock dividend, July 1, 2021		87,000
2-for-1 stock split, July 1, 2022	435,000
Shares sold, October 1, 2022	145,000
Shares outstanding, December 31	1,015,000	435,000	348,000

Required

a. For purposes of calculating EPS at the end of each year, determine the number of shares outstanding. Hint: consider each reporting year separately.

	2022	2021	2020
Number of shares	906,250	Answer	333,500

b. For purposes of calculating EPS at the end of 2022, when comparative statements are being prepared on a three-year basis, determine the number of shares outstanding for each year.

	2022	2021	2020
Number of shares	Answer	Answer	Answer

c. Compute EPS for each year based on computations in part b. Assume net income is $1,012,500, $891,000, and $807,300, for years 2022, 2021, and 2020, respectively.

Note: Round earnings per share amounts to two decimal places.

Basic EPS	Net Income Available to Common Stockholders	Weighted Avg. Common Shares Outstanding	Per Share
2020	Answer	Answer	Answer
2021	Answer	Answer	Answer
2022	Answer	Answer	Answer