The income statement, statement of retained earnings, and balance sheet for Somerville Company are as follows:

Somerville Company

Income Statement

For the Year Ended December $31,20$X$2$

Line Item Description Amount Percent

Net sales $$8,281,989100\mathrm{.}0\%$

Less: Cost of goods sold $5,383,29365\mathrm{.}0$

Gross margin $$2,898,69635\mathrm{.}0$

Less: Operating expenses $1,323,36816\mathrm{.}0$

Operating income $$1,575,32819\mathrm{.}0$

Less: Interest expense $50,0000\mathrm{.}6$

Income before taxes $$1,525,32818\mathrm{.}4$

Less: Income taxes $(40\%)*610,1317\mathrm{.}4$

Net income $$915,19711\mathrm{.}0$

$*$ Includes both state and federal taxes.

Somerville Company

Statement of Retained Earnings

For the Year Ended December $31,20$X$2$

Line Item Description Amount

Balance, beginning of period $$1,979,155$

Net income $915,197$

Total $$2,894,352$

Preferred dividends $80,000$

Dividends to common stockholders $201,887$

Balance, end of period $$2,612,465$

Somerville Company

Comparative Balance Sheets

At December $31,20$X$1$ and $20$X$2$

Line Item Description $20$X$120$X$2$

Assets

Current assets:

Cash $$2,875,000$ $$2,580,000$

Marketable securities $800,000700,000$

Accounts receivable $($net$)939,776690,000$

Inventories $490,000260,000$

Other $93,00074,261$

Total current assets $$5,197,776$ $$4,304,261$

Property and equipment:

Land $$1,575,000$ $$1,067,315$

Building and equipment $($net$)1,348,8001,150,000$

Total long$-$term assets $$2,923,800$ $$2,217,315$

Total assets $$8,121,576$ $$6,521,576$

Liabilities and Stockholders' Equity

Current liabilities:

Notes payable, short term $$1,170,127$ $ $543,641$

Accounts payable $298,484101,500$

Current maturity of long$-$term debt $3,0002,000$

Accrued payables $200,00057,780$

Total current liabilities $$1,671,611$ $ $704,921$

Long$-$term liabilities:

Bonds payable, $10\%500,000500,000$

Total liabilities $$2,171,611$ $$1,204,921$

Stockholders' equity:

Preferred stock, $$25$ par, $8\%$ $$1,000,000$ $$1,000,000$

Common stock, $$1\mathrm{.}50$ par $337,500337,500$

Additional paid$-$in capital$*2,000,0002,000,000$

Retained earnings $2,612,4651,979,155$

Total stockholders' equity $$5,949,965$ $$5,316,655$

Total liabilities and stockholders' equity $$8,121,576$ $$6,521,576$

$*$ For common stock only.

Required:

$1.$ Compute the number of common shares.

fill in the blank $1$ of $1$ shares

$2.$ Compute earnings per share. Round to the nearest cent.

fill in the blank $1$ of $1$$ per share