As of December 31, 2020, Ahab Fisheries Inc. had the followingshare capital:
· 50,000 common shares $200,000
· 80,000 $2,non-cumulative, preferred shares $600,000
During 2021, the following share transactions occurred:
· April 1 Issued 10,000 common shares for cash of $ 45,000
· July 1 Issued 20,000 common shares at $ 4.75 each
· Dec 15 Cash dividendswere declared for the preferred shares only.
For the year ending December 31, 2021, Ahab had profit of $323,000.
Required
a) Calculate the profitavailable to common shareholders in 2021.
b) Calculate the weightedaverage number of common shares in 2021.
c) Calculate the earnings pershare in 2021. (1 mark)
