Grace Corp. had 120,000 common shares outstanding as of January 1, and declared a 1-for-2 reverse stock split on March 31. In addition, the company bought 6,000 shares for the treasury on August 31, and 2,400 shares of stock were issued on November 1 in exchange for legal services. The company also had 1,200 shares of 5%, $10 par, cumulative, nonconvertible preferred stock outstanding for the year. No common or preferred stock dividends were declared during the year. The company suffered a net loss for the year of $120,000.

Required Compute basic EPS. Note: Round weighted average common shares outstanding to the nearest whole number. Note: Use a negative sign with a loss.

Calculation of Weighted Shares Outstanding:

Just looking for the numerator- IT IS NOT 120,000 OR (120,000) or 115,300 or (115,300)

\begin{tabular}{|c|c|} \hline \begin{tabular}{c} Inclusive \\ Dates \end{tabular} & \begin{tabular}{c} Weighted \\ Avg. Shares \end{tabular} \\ \hline Jan. - Mar. & 15,000 \\ \hline Apr. - Aug. & 25,000 \\ \hline Sept. - Oct. & 9,000 \\ \hline Nov. - Dec. & 9,400 \\ \hline & 58,400 \\ \hline \hline \end{tabular} \begin{tabular}{|c|c|c|c|} \hline \multicolumn{2}{|c|}{ Numerator } & Denominator & Per Share \\ \hline Basic EPS $(115,300)/ & 58,400=$ & (1.97) \\ \hline \end{tabular} \begin{tabular}{|c|c|} \hline \begin{tabular}{c} Inclusive \\ Dates \end{tabular} & \begin{tabular}{c} Weighted \\ Avg. Shares \end{tabular} \\ \hline Jan. - Mar. & 15,000 \\ \hline Apr. - Aug. & 25,000 \\ \hline Sept. - Oct. & 9,000 \\ \hline Nov. - Dec. & 9,400 \\ \hline & 58,400 \\ \hline \hline \end{tabular} \begin{tabular}{|c|c|c|c|} \hline \multicolumn{2}{|c|}{ Numerator } & Denominator & Per Share \\ \hline Basic EPS $(115,300)/ & 58,400=$ & (1.97) \\ \hline \end{tabular}