Pronghorn inc. uses a calendar year for financial reporting. the company is authorized to issue 8,480,000 shares of $10 par common stock. at no time has pronghorn issued any potentially dilutive securities. listed below is a summary of pronghorn’s common stock activities.
1. number of common shares issued and outstanding at december 31, 2015 1,900,000
2. shares issued as a result of a 10% stock dividend on september 30, 2016 190,000
3. shares issued for cash on march 31, 2017 2,130,000
number of common shares issued and outstanding at december 31, 2017 4,220,000
4. a 2-for-1 stock split of pronghorn’s common stock took place on march 31, 2018
required:
1) compute the weighted-average number of common shares used in computing earnings per common share for 2016 on the 2017 comparative income statement
2) compute the weighted-average number of common shares used in computing earnings per common share for 2017 on the 2017 comparative income statement
3) 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.
4) compute the weighted-average number of common shares to be used in computing earnings per common share for 2018 on the 2018 comparative income statement.