Use the following information to answer Pr. 17-62–17-63.
HarleyCorp. has been operating successfully for the past fifteen years. However, during recent years, its common shares outstanding changed as shown below. The corporation uses the calendar year as its fiscal year.
Shares outstanding, Jan 1 300,000240,000200,000
Shares sold, Apr 201540,000
25% stock dividend, Jul 1, 201660,000
2-for-1 stock split, Jul 1, 2017300,000
Shares sold, Oct 1, 2017100,000
Shares outstanding, Dec 31700,000300,000240,000
Net Income$ 750,000660,000598,000
Pr. 17-62Weighted average calculations
Calculate the weighted average number of shares outstanding for each year.
Pr. 17-63Basic earnings per share
Assuming there were no preferred shares outstanding, calculate EPS for each year based on your calculations in Pr. 17-62.