account 2 , please explain brielfy

Weighted Average Calculating Weighted-Average Number of Shares Outstanding Fraction Outstanding of Year Time Period Shares Outstanding January-March.... 500,000 X 3/12 April-October 540,000 X 7/12 November-December 510,000 X 2/12 Weighted average outstanding shares = 125,000 = 315,000 = 85,000 525,000 We can then calculate Crush's earnings per share for the year ended December 31, 2021, as: $880,000 profit - $250,000 preferred dividends declared Earnings per share = 525,000 =$1.20 *Note: Because the preferred shares are cumulative, the annual dividends of $250,000 would be subtracted even if the dividends had not been declared