Exercise 16-15
Sarasota Inc. uses a calendar year for financial reporting. Thecompany is authorized to issue 9,640,000 shares of $10 par commonstock. At no time has Sarasota issued any potentially dilutivesecurities. Listed below is a summary of Sarasota’s common stockactivities.
1.Number of common shares issued and outstanding at December 31,2015
2,140,000
2.Shares issued as a result of a 10% stock dividend on September30, 2016
214,000
3.Shares issued for cash on March 31, 2017
2,160,000
Number of common shares issued and outstanding at December 31,2017
4,514,000
4.A 2-for-1 stock split of Sarasota’s common stock took place onMarch 31, 2018
Compute the weighted-average number of common shares used incomputing earnings per common share for 2016 on the 2017comparative income statement.
Compute the weighted-average number of common shares used incomputing earnings per common share for 2017 on the 2017comparative income statement.
Compute the weighted-average number of common shares to be usedin computing earnings per common share for 2017 on the 2018comparative income statement.
Compute the weighted-average number of common shares to be usedin computing earnings per common share for 2018 on the 2018comparative income statement.
