Exercise 13-13 Weighted-average shares outstanding and earnings per share LO3

A company reported $437,995 of profit for 2020. It also declared $62,000 of dividends on preferred shares for the same year. At the beginning of 2020, the company had 78,000 outstanding common shares. These three events changed the number of outstanding shares during the year:

June		1		Sold 33,000 common shares for cash.
Aug.		31		Purchased and retired 23,000 common shares.
Oct.		1		Completed a three-for-one share split.

a. What is the amount of profit available for distribution to the common shareholders?

b. What is the weighted-average number of common shares for the year?

. What is the earnings per share for the year?