Assume that the following data relative to XYZ Company for 2017 is available:

Net Income					$2,100,000
Transactions in Common Shares		Change			Cumulative
Jan. 1, 2017, Beginning number					550,000
Mar. 1, 2017, Purchase of treasury shares		(42,400	)		665,600
June 1, 2017, Stock split 2-1		656,600			1,233,200
Nov. 1, 2017, Issuance of shares		228,000			1,561,200
8% Cumulative Convertible Preferred Stock
Sold at par, convertible into 180,000 shares of common (adjusted for split).					$900,000
Stock Options
Exercisable at the option price of $25 per share. Average market price in 2017, $30 (market price and option price adjusted for split).					93,000	shares

a. Compute weighted-average shares outstanding for 2017.

b. Compute the basic earnings per share for 2017.

c. Compute the diluted earnings per share for 2017.

Answer rating: 100% (QA)

ANSWER Computation of weighted average shares outstanding during the year 1Jan Outstanding 70000000 ... View the full answer