Sheridan Inc. has 0.95 million common shares outstanding as at January 1, 2020. On June 30, 2020, 4% convertible bonds were converted into 105,000 additional shares. Up to that point, the bonds had paid interest of $540,000 after tax. Net income for the year was $1,298,196. During the year, the company issued the following:

1.		June 30:		12,300 call options giving holders the right to purchase shares of the company for $25
2.		Sept. 30:		17,300 put options allowing holders to sell shares of the company for $20

On February 1, Sheridan also purchased in the open market 12,300 call options on its own shares, allowing it to purchase its own shares for $22. Assume the average market price for the shares during the year was $30. Assume further the following:

1.		On September 30, 210,000 convertible preferred shares were redeemed. If they had been converted, these shares would have resulted in an additional 105,000 common shares being issued. The shares carried a dividend rate of $3 per share to be paid on September 30. No conversions have ever occurred.
2.		There are 10,800 of $1,000, 5% convertible bonds outstanding with a conversion rate of three common shares for each bond starting January 1, 2021. Beginning January 1, 2024, the conversion rate is six common shares for each bond; and beginning January 1, 2028, it is nine common shares for each bond. The tax rate is 30%.

(a1)

Calculate weighted common shares outstanding.

Weighted common shares outstanding

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