P11.8A Gualtieri Inc.'s shareholders' equity accounts were as follows at the beginning of the most recent fiscal year, August 1, 2020: $1 noncumulative preferred shares (100,000 shares issued) $2,500,000 Common shares (350,000 shares issued) 3,500,000 Retained earnings 2,500,000 Total shareholders' equity $8,500,000 During the year, the following selected transactions occurred: Oct.1 Repurchased 24,000 common shares for $20 per share. Dec. 1 Issued 60,000 common shares for $25 per share. Feb. 1 Issued 10,000 common shares for $26 per share. June Declared the annual preferred cash dividend to shareholders of record on July 10, payable on 20 July 31. July31 Net income for the year ended July 31, 2021, was $1,280,000. Instructions a) Calculate the weighted average number of common shares for the year. b) Calculate the basic earnings per share. c) Why is it important to use a weighted average number of shares in the calculation of basic earnings per share? Why not just use the number of shares issued at year end