Exercise 16-15

Newton Inc. uses a calendar year for financial reporting. The company is authorized to issue 9,180,000 shares of $12 par common stock. At no time has Newton issued any potentially dilutive securities. Listed below is a summary of Newtons common stock activities.

1.		Number of common shares issued and outstanding at December 31, 2012		2,406,000
2.		Shares issued as a result of a 12% stock dividend on September 30, 2013		288,720
3.		Shares issued for cash on March 31, 2014		2,018,000
		Number of common shares issued and outstanding at December 31, 2014		4,712,720
4.	A	2-for-1 stock split of Newtons common stock took place on March 31, 2015

A) Compute the weighted-average number of common shares used in computing earnings per common share for 2013 on the 2014 comparative income statement.

B) Compute the weighted-average number of common shares used in computing earnings per common share for 2014 on the 2014 comparative income statement.

C)Compute the weighted-average number of common shares to be used in computing earnings per common share for 2014 on the 2015 comparative income statement.

D) Compute the weighted-average number of common shares to be used in computing earnings per common share for 2015 on the 2015 comparative income statement.