The following information is available for Beauvalon Inc. for the preparation of its September 30, 2016, financial statements:

Income before taxes............... $ 265,400

Income tax expense............... $ 62,600

Other comprehensive income (loss) ......... $ (12,300)

Earnings per share................... $ 1.878

Dividends declared, common............. $ 40,000

Dividends declared, preferred............. $ 15,000

Retained earnings, October 1, 2015......... $1,457,850

Accumulated other comprehensive income, October 1, 2015.. $ 43,700

Share capital, common shares, October 1, 2015......$2,000,000

Share capital, preferred shares, October 1, 2015...... $ 500,000

Beauvalon did not issue or buy back any shares during the year.

Required:

a. Prepare the shareholders’ equity section of the statement of financial position as at September 30, 2016.

b. How many common shares does Beauvalon have outstanding?