Question

Flounder Inc. uses a calendar year for financial reporting. The company is authorized to issue 9,720,000 shares of $10 par common stock. At no time has Flounder issued any potentially dilutive securities. Listed below is a summary of Flounder’s common stock activities.

1.		Number of common shares issued and outstanding at December 31, 2015		1,910,000
2.		Shares issued as a result of a 10% stock dividend on September 30, 2016		191,000
3.		Shares issued for cash on March 31, 2017		1,830,000
		Number of common shares issued and outstanding at December 31, 2017		3,931,000
4.		A 2-for-1 stock split of Flounder’s common stock took place on March 31, 2018

A) Compute the weighted-average number of common shares used in computing earnings per common share for 2016 on the 2017 comparative income statement B) Compute the weighted-average number of common shares used in computing earnings per common share for 2017 on the 2017 comparative income statement C) Compute the weighted-average number of common shares to be used in computing earnings per common share for 2017 on the 2018 comparative income statement. D) Compute the weighted-average number of common shares to be used in computing earnings per common share for 2018 on the 2019 comparative income statement.

Answer 1