Question $2$:$20$ points $$ Welles Company reported the following data for $2025.$ Net income, $$6,216,000.$ Common shares outstanding at the beginning of the year were $2,400,000.$ The company issued $600,000$ additional new shares of common stock on October $1.$ Nonconvertible non$-$cumulative preferred stock, $$100$ par, $6\%$ dividend per share per year, $300,000$ shares outstanding all year.$$ No dividends were declared during $2025.$ Convertible bonds, $$3,000,000$ face value, were issued at par in $2019.$ The bonds mature in $2029.$ The interest rate on the bonds is $5\%.$ The bonds are convertible into $500,000$ shares of common stock. $$ The income tax rate is $25\%.$ The company$$s fiscal year ends December $31.$ Required: $$ a$)$ Calculate the weighted average number of common shares outstanding for $2025.$ b$)$ Calculate basic earnings per share. Show the calculations. $$ c$)$ Calculate diluted earnings per share, showing all calculations for any potentially dilutive securities$.$ Make sure amounts are formatted clearly as shares or dollars. $$ d$)$ Prepare a partial income statement in proper form, beginning with net income.$$ Double$-$underline the net income amount.$$ Round all dollar amounts to two decimal places.$$ Show shares amounts with commas, e$.$g$.,2,400,000.$ Make sure you show all calculations and use proper formatting, including underlining.$-$ Net income, $\backslash (\backslash$$ $6,216,000\backslash ).$

$-$ Common shares outstanding at the beginning of the year were $\backslash (2,400,000\backslash ).$ The company issued $600,000$ additional new shares of common stock on October $1.$

$-$ Nonconvertible non$-$cumulative preferred stock, $\backslash (\backslash$$ $100\backslash$mathrm$\{$par$\},6\backslash \%\backslash )$ dividend per share per year, $300,000$ shares outstanding all year. No dividends were declared during $2025.$

$-$ Convertible bonds, $\backslash (\backslash$$ $3,000,000\backslash )$ face value, were issued at par in $2019.$ The bonds mature in $2029.$ The interest rate on the bonds is $\backslash (5\backslash \%\backslash ).$ The bonds are convertible into $500,000$ shares of common stock.

$-$ The income tax rate is $\backslash (25\backslash \%\backslash ).$

$-$ The company's fiscal year ends December $31.$

Required:

a$)$ Calculate the weighted average number of common shares outstanding for $2025.$

b$)$ Calculate basic earnings per share. Show the calculations.

c$)$ Calculate diluted earnings per share, showing all calculations for any potentially dilutive securities$.$ Make sure amounts are formatted clearly as shares or dollars.

d$)$ Prepare a partial income statement in proper form, beginning with net income. Doubleunderline the net income amount.

Round all dollar amounts to two decimal places. Show shares amounts with commas, e$.$g$.,2,400,000.$

Make sure you show all calculations and use proper formatting, including underlining.