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E16-15 (Weighted-Average Number of Shares) Newton Inc. uses a calendar year for financial

reporting. The company is authorized to issue

9,000,000

shares of

$10

par common stock. At no time has Newton issued any potentially dilutive securities. Listed below is a summary of Newtons common stock activities.

1. Number of common shares issued and outstanding at December 31, 2012

2,000,000

2. Shares issued as a result of a 10% stock dividend on September 30, 2013

200,000

3. Shares issued for cash on March 31, 2014

2,000,000

Number of common shares issued and outstanding at December 31, 2014

4,200,000

4. A 2-for-1 stock split of Gogeans common stock took place on March 31, 2015

Instructions:

(a) Compute the weighted average number of common shares used in computing earnings per common share for 2013 on the 2014 comparative income statement.

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(b) Compute the weighted average number of common shares used in computing earnings per common share for 2014 on the 2014 comparative income statement.

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Shares outstanding

(c) Compute the weighted average number of common shares to be used in computing earnings per common share for 2014 on the 2015 comparative income statement.

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Shares outstanding

(d) Compute the weighted average number of common shares to be used in computing earnings per common share for 2015 on the 2015 comparative income statement.

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Shares outstanding

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