Question 5:

Crane Inc. is publicly traded and uses a calendar year for financial reporting. The company is authorized to issue 50 million common shares. At no time has Crane issued any potentially dilutive securities. The following is a summary of Cranes common share activities:

Number of common shares issued and outstanding at December 31, 2018		6,770,000
Shares issued as a result of a 10% stock dividend on September 30, 2019		677,000
Shares issued for cash on March 31, 2020		2,090,000
Number of common shares issued and outstanding at December 31, 2020		9,537,000

Crane issued its 2020 financial statements on February 28, 2021. A 2for1 stock split of Cranes common shares occurred on March 31, 2021.

A.) Calculate the weighted average number of common shares to use in calculating earnings per common share for 2019 on the 2019 comparative income statement.

Weighted average number of common shares

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B.) Calculate the weighted average number of common shares to use in calculating earnings per common share for 2019 on the 2020 comparative income statement.

Weighted average number of common shares:

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C.) Calculate the weighted average number of common shares to use in calculating earnings per common share for 2020 on the 2020 comparative income statement.

Weighted average number of common shares

__________________

D.) Calculate the weighted average number of common shares to use in calculating earnings per common share for 2020 on the 2021 comparative income statement.

Weighted average number of common shares

_________________-

E.) Calculate the weighted average number of common shares to use in calculating earnings per common share for 2021 on the 2021 comparative income statement.

Weighted average number of common shares

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