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Newton Inc. uses a calendar year for financial reporting. Listed below is a summary of Newtons common stock activities. At no time has Newton issued
Newton Inc. uses a calendar year for financial reporting. Listed below is a summary of Newtons common stock activities. At no time has Newton issued any potentially dilutive securities. |
Number of common shares authorized | 9,000,000 | ||
Par value of common stock | $ 10.00 |
Number of common shares issued and outstanding at December 31, 2015 | 2,000,000 | ||||
Shares issued as a result of a 10% stock dividend on September 30, 2016 | 200,000 | ||||
Shares issued for cash on March 31, 2017 | 2,000,000 | ||||
Number of common shares issued and outstanding at December 31, 2017 | 4,200,000 |
A 2-for-1 stock split of Newtons common stock took place on March 31, 2018. |
(a) | Compute the weighted-average number of common shares used in computing earnings per common share for 2016 on the 2017 comparative income statement. | |||||
(b) | Compute the weighted-average number of common shares used in computing earnings per common share for 2017 on the 2017 comparative income statement. | |||||
(c) | Compute the weighted-average number of common shares to be used in computing earnings per common share for 2017 on the 2018 comparative income statement. | |||||
(d) | Compute the weighted-average number of common shares to be used in computing earnings per common share for 2018 on the 2018 comparative income statement. | |||||
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