Culver Inc. uses a calendar year for financial reporting. The company is authorized to issue...
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Culver Inc. uses a calendar year for financial reporting. The company is authorized to issue 8,790,000 shares of $10 par common stock. At no time has Culver issued any potentially dilutive securities. Listed below is a summary of Culvers common stock activities.
1.
Number of common shares issued and outstanding at December 31, 2018
2,200,000
2.
Shares issued as a result of a 10% stock dividend on September 30, 2019
220,000
3.
Shares issued for cash on March 31, 2020
2,090,000
Number of common shares issued and outstanding at December 31, 2020
4,510,000
4.
A 2-for-1 stock split of Culvers common stock took place on March 31, 2021
1. Compute the weighted-average number of common shares used in computing earnings per common share for 2019 on the 2020 comparative income statement.
2. Compute the weighted-average number of common shares used in computing earnings per common share for 2020 on the 2020 comparative income statement.
3. Compute the weighted-average number of common shares to be used in computing earnings per common share for 2020 on the 2021 comparative income statement.
4. Compute the weighted-average number of common shares to be used in computing earnings per common share for 2021 on the 2021 comparative income statement.
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