your answers in the formats provided at the end of the case in Exhibit 2 Panel A Balance Sheets , and Exhibit 2 . Panel B Statements of Operations . An Excel file containing the Case data is available from your instructor Assume that the weighted average number of common shares outstanding is approxi mately 22 million and 18 7 million for the years ending July 31 201 1 and July 31 2010 respectively . For the changes resulting from this error , please assume the following : ( 1 ) Income tax rate - 33 percent Diamond follows the accrual method of accounting for financial reporting , as well as income tax purposes