For the year ended December 31, 2018, Norstar Industriesreported net income of $655,000. At January 1, 2018, the companyhad 900,000 common shares outstanding. The following changes in thenumber of shares occurred during 2018:
| Apr. | | 30 | | Sold 60,000 shares in a public offering. |
| May | | 24 | | Declared and distributed a 5% stock dividend. |
| June | | 1 | | Issued 72,000 shares as part of the consideration for thepurchase of assets from a subsidiary. |
Required:
Compute Norstar's earnings per share for the year ended December31, 2018. (Enter your answers in thousands.)
This is what I have calculated and it is incorrect. Pleasehelp.
| Weighted average number of shares - Jan 1 | 900,000 | |
| Weighted average number of shares - Apr 30 | 40,000 | (60000*(8/12) |
| Weighted average of stock dividend shares distributed -May 24 | 47,000 | (900000+C13)*5% |
| Weighted average of stock dividend shares distributed -June 30 | 42,000 | 72000*7/12 |
| Total weighted average number of shares | 1,029,000 | |
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| Earnings per share = | 0.637 | |
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