You have been hired as a junior financial analyst for an investment firm. Your manager has asked you to explain certain information for one of its investments - Maple Leaf Food Ine. An extract from the audited consolidated financial statements of Maple Leaf Foods Inc. is included below. Your manager indicates that you can answer her questions without reference to the Maple Leaf Foods Ino. financial statements (ie you do not need the Maple Leaf Food Ine. financial statements). 22. EARNINGS PER SHARE Basic sumings per share amounts are calculated by dividing the net earnings of the Company by the weighted average number of Shares outstanding during the year. Diluted eamings per share amounts are calculated by dividing the net eamings of the Company by the weighted average number of shares outstanding during the year, adjusted for the effects of potentially dilutive instruments. The folozing table sets forth the calculation of basic and diluted eamings per share ('EPS"): 2021 2020/ Net weighted number of S/am0sN EPS Weighted average number of Net eamings shares: EPS 102.823 123.5 500,83 113.277 1= 122 102,829 $ 082 $ 113,277 124.3 3.091 Twelve months ended December 31, Basic Stock pptions Ellited. 

Required: 

a) Give two possible reasons why basic camings per share (EPS) decreased in fiscal 2021 compared to fiscal 2020? Be very specific in your response. (2 marks) 

b) Explain, using an example, why diluted EP's is lower than basic EPS? Be specitc. (2 marks)