Microsoft Corporation is engaged in developing, manufacturing, licensing and supporting a range of software products and services for different types of computing devices. The company’s common stock is traded on the NASDAQ. The annual report 2011 (for the year ended 30 June) contains the following information: ‘Basic earnings per share (‘EPS’) is computed based on the weighted average number of shares of common stock outstanding during the period. Diluted EPS is computed based on the weighted average number of shares of common stock plus the effect of dilutive ‘potential common shares’ outstanding during the period using the treasury stock method. Dilutive ‘potential common shares’ include outstanding stock options, stock awards, and shared performance stock awards’.
The weighted average outstanding shares of common stock in 2011 was 8,490 million and dilutive effect of stock-based awards was 103 million. The income statement shows net income to be US m$ 23,150.
Required
Prepare a statement showing the computation of basic and diluted earnings per share for the year 2011.