Question

Portillo Inc. uses a calendar year for financial reporting. The company is authorized to issue 9,000,000 $10 par ordinary shares. At no time has Portillo issued any potentially dilutive securities. Listed below is a summary of Portillo’s ordinary share activities.
1. Number of ordinary shares issued and outstanding at December 31, 2009 ................2,400,000
2. Shares issued as a result of a 10% share dividend on September 30, 2010....................240,000
3. Shares issued for cash on March 31, 2011..................................................................2,000,000
Number of ordinary shares issued and outstanding at December 31, 2011....................4,640,000
4. A 2-for-1 share split of Portillo’s ordinary shares took place on March 31, 2012.

Instructions
(a) Compute the weighted-average number of ordinary shares used in computing earnings per ordinary share for 2010 on the 2011 comparative income statement.
(b) Compute the weighted-average number of ordinary shares used in computing earnings per ordinary share for 2011 on the 2011 comparative income statement.
(c) Compute the weighted-average number of ordinary shares to be used in computing earnings per ordinary share for 2011 on the 2012 comparative income statement.
(d) Compute the weighted-average number of ordinary shares to be used in computing earnings per ordinary share for 2012 on the 2012 comparative income statement.



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  • CreatedJune 17, 2013
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