Fine Toy Company reported $170,000 of profit for 2020. It also declared a dividend of $25,000 on their preferred shares for the same year. As at January 1, 2020, Fine Toy's had 32,500 issued and outstanding common shares. The following events occured during the year:

April 1, 2020	Repurchased and retired 12,500 common shares
September 30, 2020	Issued a 3:1 common share split
December 1, 2020	Issued 21,000 preferred shares

Required :

a) Using the table below, calcuate the wighted-average number of common shares for the year.

Total

b) Calculate the earnings per share for the year.  show your work and round your calculation to two decimal places.

c) Describe how the share split would affect the equity section on the balance sheet.

Answer rating: 100% (QA)

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