Portillo SA uses a calendar year for financial reporting. The company is authorized to issue 9,000,000 R$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, 2018.........2,400,000
2. Shares issued as a result of a 10% share dividend on September 30, 2019............240,000
3. Shares issued for cash on March 31, 2020...............................................2,000,000
Number of ordinary shares issued and outstanding at December 31, 2020............4,640,000
4. A 2-for-1 share split of Portillo's ordinary shares took place on March 31, 2021
Instructions
a. Compute the weighted-average number of ordinary shares used in computing earnings per ordinary share for 2019 on the 2020 comparative income statement.
b. Compute the weighted-average number of ordinary shares used in computing earnings per ordinary share for 2020 on the 2020 comparative income statement.
c. Compute the weighted-average number of ordinary shares to be used in computing earnings per ordinary share for 2020 on the 2021 comparative income statement.
d. Compute the weighted-average number of ordinary shares to be used in computing earnings per ordinary share for 2021 on the 2021 comparative income statement.