Can the word problem that begins with Dilutive Securities and EPS be worked out the same way that I worked out the word problem that asks, "Compute the number of shares of common stock that Francis should use in calculating basic earnings per share for 2016. Weighted average shares outstanding: ? Shares?"?

Can you carefully look at how I counted the months for the problem connected to "Compute the number of shares of common stock that Francis should use in calculating basic earnings per share for 2016. Weighted average shares outstanding: ? Shares?", please?

Do you notice how I count January 1 first, then I counted every other month except for May 1. Can the word problem at the very top of this page be worked out the same way? If so, can you show me, please? 3,000,000 and 3,050,000 shares is the final solution to the word problem at the very top.

Dilutive Securities and EPS Tredell Company has 2,500,000 shares of common stock outstanding on December 31, 2015. An additional 500,000 shares of common stock were issued on April 2, 2016, and 250,000 more on July 2, 2016. On October 1, 2016. Iredell issued 5,000, $1,000 face value, 7% convertible bonds. Each bond is dilutive and convertible into 40 shares of common stock. No bonds were converted into common stock in 2016. What is the number of shares to be used in computing basic earnings per share and diluted earnings per share, respectively, for the year ended December 31, 2016? a. 3.000.000 and 3,050,000 shares Ob. 2,875,000 and 2,925,000 shares Oc. 3,000,000 and 3,200,000 shares Od. 2,875,000 and 3,075,000 shares Convertible Preferred Stock, Convertible Bonds, and EPS Francis Company has 24,000 shares of common stock outstanding at the beginning of 2016. Francis issued 3,000 additional shares on May 1 and 2,000 additional shares on September 30. It also has two convertible securities outstanding at the end of 2016. These are: 1. Convertible preferred stock: 2,500 shares of 8.5%, $50 par, preferred stock were issued on January 2, 2013, for $60 per share. Each share of preferred stock is convertible into 3 shares of common stock. Current dividends have been declared and paid. To date, no preferred stock has been converted, 2. Convertible bonds: Bonds with a face value of $250,000 and an interest rate of 5.5% were issued at par in 2015. Each $1,000 bond is convertible into 20 shares of common stock. To date, no bonds have been converted. Francis earned net income of $72,500 during 2016. The income tax rate is 30%. 1 Required: 1. Compute the number of shares of common stock that Francis should use in calculating basic earnings per share for 2016. Weighted average shares outstanding: 26,500 shares Francis Company has 24,000 shares of common stock outstanding at the beginning of 2016. 1 January-May (January 1, February 1, March 1. April 1, May 1) 1 **I must count-January-1 first, then I must count every other month.--I must-exclude-May-1 in the very beginning when I count the months in the beginning. I 1 January 1, February 1, March 1, April 1, May 19 3. 4 months 12 months Weighted Average-Shares-Formula = Outstanding shares of common-stock-x-Fraction-ofYear outstanding 1 =-Weighted Average-Shares 1 =-24,000 outstanding shares-> 4 months 12 months 24,000 4 12 1 96,000 12 =-3,0001 1 Francis issued 3,000 additional shares on May 19 May-September (May-1, -June-1, -July1, August-1. September-3001 1 May 1, June 1, July 1, August 1, September 309 2.... 3. -4: 1 = 24,000+3,0001 =-27,0001 5 months 12 months Weighted Average-Shares-Formula = Outstanding shares of common-stock-x -Fraction-of-Year-outstanding 61 --Weighted Average Shares = 27,000 outstanding shares-x- 5 months 12 months 27,000 5 1 12 135,000 12 =-11,2501 Francis issued 2,000 additional shares on September 30. September-December (September-30. October 31, November 30. December 31) September 30, October 31. November 30, December 317 = 27,000+ 2.0009 =-29,0001 3 months 12 months Weighted Average Shares Formula =-Outstanding shares of common-stock-x-Fraction-of-Year-outstanding 1 =-Weighted Average Shares =-29,000 outstanding shares-x 3 months 12 months 3 12 29,000 1 87,000 12 =-7,2501 - + + Weighted-Average-Shares 1 Months Shares Shares Are + Fraction of Year + Equivalent Are Outstanding Outstanding Outstanding Whole-Units January-May+ 24,000 shares+ .....4/12 --0001 July-August 27,000 shares+ -5/12 11,2501 September-Dec 29,000 sharest 3/12 --7.2501 Total weighted average common shares + 26,5001 1 The total weighted average number of outstanding shares of a common-stock (or total weighted- average common shares) is-26,500. 1 IIII + +