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Please show work in excel. E16-15 (Weighted-Average Number of Shares) Newton Inc. uses a calendar year for financial reporting. The company is authorized to issue
Please show work in excel.
E16-15 (Weighted-Average Number of Shares) Newton Inc. uses a calendar year for financial reporting. The company is authorized to issue 9,000,000 shares of $10 par common stock. At no time has Newton is- sued any potentially dilutive securities. Listed below is a summary of Newton's common stock activities. 1. Number of common shares issued and outstanding at December 31, 2012 2. Shares issued as a result of a 10% stock dividend on September 30, 2013 3. Shares issued for cash on March 31, 2014 Number of common shares issued and outstanding at December 31, 2014 4. A 2-for-1 stock split of Newton's common stock took place on March 31, 2015 2,000,000 200,000 2,000,000 4,200,000 Instructions (a) Compute the weighted average number of common shares used in computing earnings per common share for 2013 on the 2014 comparative income statement. (b) Compute the weighted average number of common shares used in computing earnings per common share for 2014 on the 2014 comparative income statement. (c) Compute the weighted average number of common shares to be used in computing earnings per common share for 2014 on the 2015 comparative income statement. (d) Compute the weighted average number of common shares to be used in computing earnings per common share for 2015 on the 2015 comparative income statement. (CMA adapted)Step by Step Solution
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