Naomi Corporation had $$875,000$ of net income in $2023.$ On January $1,2013,$ there were $220,000$

shares of common stock outstanding. On May $1,15,000$ shares were issued. On August $1,$ Naomi

issued a $10\%$ stock dividend and on November $1,$ Naomi bought $20,000$ shares of treasury stock.

The market price of the common stock averaged $$50$ during $2023.$ The tax rate is $20\%.$

During $2023,$ there were $10,000$ shares of cumulative, convertible preferred stock outstanding. The

preferred is $$100$ par, pays $$6$ per share in dividends per year and is convertible into two shares of

common stock.

Naomi has $5,000$ stock options that are currently outstanding. These options can be exercised at an

option price of $$35$ per share.

Naomi issued $$4,000,000$ of $4\%$ convertible bonds at face value during $2012.$ Each $$1,000$ bond is

convertible into $20$ shares of common stock.

Required:

a$.$ Calculate the weighted average number of shares outstanding for $2023$ to be used to calculate

basic earnings per share.

b$.$ Compute basic earnings per share.

c$.$ Calculate the number of shares to be used to calculate diluted earnings per shares.

d$.$ Compute diluted earnings per share.