Part 1 (5 marks 3 On January 1, 2018 Windsor Inc. had 570,000 common shares outstanding. During the year it had the following transactions that affected the common shares account Mar. 1 Issued 300,000 common shares for cash. Apr. 1 Issued a 20% stock dividend. July 1 Acquired and cancelled 200,000 common shares for cash. Nov. 1 Issued 48,000 common shares for cash. Page 2: 6 7 8 The public company has a December 31 year-end and is planning to issue its audited December 31, 2018 financial statements on February 25, 2019. 9 Windsor's net income for 2018 was $3.5 million and dividends of $600,000 were declared and paid to preferred shareholders of which $300,000 related to dividends on the cumulative preferred shares that were in arrears. NOTE: Earnings per share should be calculated to the nearest cent. Page 3: 12 10 Question 6 (3 points) Calculate the weighted average number of common shares outstanding as at December 31, 2018 for the purpose of calculating Basic EPS. 1 2 3 4 5 Sats Page 2: 6 7 8 Question 7 (2 points) Calculate 2018 Basic EPS for Windsor Inc. Page 3: 11