On January $1,2021,$ Splish Corp. had $2,565,000$ shares of common stock issued and outstanding. During $2021,$ it had

the following transactions that related to common stock.

Mar. $1$ Issued $270,000$ shares in exchange for land

Apr. $1$ Acquired $204,000$ shares of treasury stock

July $1$ Issued a $20\%$ stock dividend

Sept. $1$ Reissued $244,800$ shares of treasury stock

$($adjusted for $20\%$ stock dividend$)$

Oct. $1$ Issued a $2-$for$-1$ stock split

$($a$)$

Y Your answer is correct.

Determine the weighted average number of shares outstanding as of December $31,2021.$

The weighted$-$average number of shares outstanding

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$($b$)$

Your answer is incorrect.

Assume that Splish Corp. earned net income of $$7,761,000$ during $2021.$ In addition, it had $192,000$ shares of $9\%,$

$$100$ par value nonconvertible, cumulative preferred stock outstanding for the entire year. Because of liquidity

considerations, however, the company did not declare and pay a preferred dividend in $2021.$ Compute earnings per

share for $2021,$ using the weighted$-$average number of shares determined in part $($a$).($Round answer to $2$

decimal places, e$.$g$.2\mathrm{.}55.)$

Earnings Per Share $