Exercise 16-15

Nash Inc. uses a calendar year for financial reporting. The company is authorized to issue 8,880,000 shares of $12 par common stock. At no time has Nash issued any potentially dilutive securities. Listed below is a summary of Nashs common stock activities.

1.		Number of common shares issued and outstanding at December 31, 2018		2,090,000
2.		Shares issued as a result of a 12% stock dividend on September 30, 2019		250,800
3.		Shares issued for cash on March 31, 2020		2,170,000
		Number of common shares issued and outstanding at December 31, 2020		4,510,800
4.		A 2-for-1 stock split of Nashs common stock took place on March 31, 2021

a.) Compute the weighted-average number of common shares used in computing earnings per common share for 2019 on the 2020 comparative income statement.

b.) Compute the weighted-average number of common shares used in computing earnings per common share for 2020 on the 2020 comparative income statement.

c.) Compute the weighted-average number of common shares to be used in computing earnings per common share for 2020 on the 2021 comparative income statement.

d.) Compute the weighted-average number of common shares to be used in computing earnings per common share for 2021 on the 2021 comparative income statement.