Question

Portillo Inc. uses a calendar year for financial reporting. The company is authorized to issue 9,000,000 £10 par ordinary shares. At no time has Portillo issued any potentially dilutive securities. Listed below is a summary of Portillo’s ordinary share activities.
1. Number of ordinary shares issued and outstanding at December 31, 2014 2,400,000
2. Shares issued as a result of a 10% share dividend on September 30, 2015 240,000
3. Shares issued for cash on March 31, 2016 2,000,000
Number of ordinary shares issued and outstanding at December 31, 2016 4,640,000
4. A 2-for-1 share split of Portillo’s ordinary shares took place on March 31, 2017
Required:
a. Compute the weighted-average number of ordinary shares used in computing earnings per ordinary share for 2015
b. Compute the weighted-average number of ordinary shares used in computing earnings per ordinary share for 2016
c. Compute the weighted-average number of ordinary shares used in computing earnings per ordinary share for 2017

Need the calculations and working of each part.

Answer 1

Calculations -