E16.16 (LO 4) (Weighted-Average Ordinary Shares) Portillo SA uses a calendar year for financial reporting. The company is authorized to issue 9,000,000 R$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, 2021 2,400,000 2. Shares issued as a result of a 10% share dividend on September 30, 2022 240,000 3. Shares issued for cash on March 31, 2023 2,000,000 Number of ordinary shares issued and outstanding at December 31, 2023 4,640,000 4. A 2-for-1 share split of Portillo's ordinary shares took place on March 31, 2024 Instructions a. Compute the weighted-average ordinary shares used in computing earnings per ordinary share for 2022 on the 2023 comparative income statement. b. Compute the weighted-average ordinary shares used in computing earnings per ordinary share for 2023 on the 2023 comparative income statement. c. Compute the weighted-average ordinary shares to be used in computing earnings per ordinary share for 2023 on the 2024 comparative income statement. d. Compute the weighted-average ordinary shares to be used in computing earnings per ordinary share for 2024 on the 2024 comparative income statement.
E16.16 (LO 4) (Weighted-Average Ordinary Shares) Portillo SA uses a calendar year for financial reporting. The company is authorized to issue 9,000,000 R$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, 2021 2,400,000 2. Shares issued as a result of a 10% share dividend on September 30, 2022 240,000 3. Shares issued for cash on March 31, 2023 2,000,000 Number of ordinary shares issued and outstanding at December 31, 2023 4,640,000 4. A 2-for-1 share split of Portillo's ordinary shares took place on March 31, 2024 Instructions a. Compute the weighted-average ordinary shares used in computing earnings per ordinary share for 2022 on the 2023 comparative income statement. b. Compute the weighted-average ordinary shares used in computing earnings per ordinary share for 2023 on the 2023 comparative income statement. c. Compute the weighted-average ordinary shares to be used in computing earnings per ordinary share for 2023 on the 2024 comparative income statement. d. Compute the weighted-average ordinary shares to be used in computing earnings per ordinary share for 2024 on the 2024 comparative income statement.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
E16-16. Please show all workings clearly.
![E16.16 (LO 4) (Weighted-Average Ordinary Shares) Portillo SA uses a calendar year
for financial reporting. The company is authorized to issue 9,000,000 R$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, 2021
2,400,000
2. Shares issued as a result of a 10% share dividend on September 30, 2022
240,000
3. Shares issued for cash on March 31, 2023
2,000,000
Number of ordinary shares issued and outstanding at December 31, 2023
4,640,000
4. A 2-for-1 share split of Portillo's ordinary shares took place on March 31,
2024
Instructions
a. Compute the weighted-average ordinary shares used in computing earnings per
ordinary share for 2022 on the 2023 comparative income statement.
b. Compute the weighted-average ordinary shares used in computing earnings per
ordinary share for 2023 on the 2023 comparative income statement.
c. Compute the weighted-average ordinary shares to be used in computing earnings per
ordinary share for 2023 on the 2024 comparative income statement.
d. Compute the weighted-average ordinary shares to be used in computing earnings per
ordinary share for 2024 on the 2024 comparative income statement.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ff0ebf8d2-9b4e-4b89-9717-33c2ef34e3fe%2F51f0bf76-79c5-4f3a-8010-2f0e49a46baf%2F7da8y28_processed.jpeg&w=3840&q=75)
Transcribed Image Text:E16.16 (LO 4) (Weighted-Average Ordinary Shares) Portillo SA uses a calendar year
for financial reporting. The company is authorized to issue 9,000,000 R$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, 2021
2,400,000
2. Shares issued as a result of a 10% share dividend on September 30, 2022
240,000
3. Shares issued for cash on March 31, 2023
2,000,000
Number of ordinary shares issued and outstanding at December 31, 2023
4,640,000
4. A 2-for-1 share split of Portillo's ordinary shares took place on March 31,
2024
Instructions
a. Compute the weighted-average ordinary shares used in computing earnings per
ordinary share for 2022 on the 2023 comparative income statement.
b. Compute the weighted-average ordinary shares used in computing earnings per
ordinary share for 2023 on the 2023 comparative income statement.
c. Compute the weighted-average ordinary shares to be used in computing earnings per
ordinary share for 2023 on the 2024 comparative income statement.
d. Compute the weighted-average ordinary shares to be used in computing earnings per
ordinary share for 2024 on the 2024 comparative income statement.
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