In this problem, how do you solve for the average number of common shares outstanding? I do not know how to find it.

Also, what is the earnings per share for each year?

Last Year Lydex Company Comparative Balance Sheet This Year Assets Current assets: Cash $ 1,000,000 Marketable securities 0 Accounts receivable, net 2,860,000 Inventory 3,640,000 Prepaid expenses 270,000 Total current assets 7,770,000 Plant and equipment, net 9,600,000 Total assets $17,370,000 Liabilities and Stockholders Equity Liabilities: Current liabilities $ 4,050,000 Note payable, 108 3,700,000 Total liabilities 7,750,000 Stockholders' equity! Common stock, $75 par value 7,500,000 Retained earnings 2,120,000 Total stockholders' equity 9.620.000 Total liabilities and $17,370,000 stockholders equity $1,240.000 300,000 1,960,000 2,400,000 210,000 6,110,000 9,090,000 $15,200,000 $ 3,060,000 3,100,000 6,160,000 7.500.000 1,540,000 9,040,000 $15,200,000 Lydex Company Comparative Income Statement and Reconciliation This Year Last Year Sales (all on account) $15,900,000 $13,990,000 Cost of goods sold 12,720,000 10,485,000 Gross margin 3,180,000 3,495,000 Selling and administrative expenses 1,410,000 1,620,000 Net operating income 1,770,000 1,875,000 Interest expense 370.000 310,000 Net income before taxes 1,400,000 1,565,000 Income taxes (305) 420,000 469,500 Net income 980,000 1,095,500 Common dividends 400,000 547,750 Net income retained 580,000 547,750 Beginning retained 1,540,000 992,250 earnings Ending retained earnings $ 2, 120, 000 $ 1,540.000 To begin your assignment you gather the following financial data and ratios that are typical of companies in Lydex Company's industry. 1.1 32 days 60 days Current ratio Acid-test ratio Average collection period Average sale period Return on assets Debt-to-equity ratio Times interest earned ratio Price-earnings ratio 0.7