Chapter 12, Problem 7CTC

a.

To determine

Indicate the nature of operations of Incorporation MMM.

b.

To determine

Indicate the number of outstanding shares of common stock, and the average sale price of those shares.

c.

To determine

Indicate the relationship between the average price computed in Part (b) and the current market price.

d.

To determine

Indicate the trend of basic earnings per share (EPS) of Incorporation MMM, EPS of the discontinued operations, and its impact on the company’s EPS.

e.

To determine

Indicate the weighted average number of shares that are used to compute the basic EPS, and give reason for the difference in the weighted average number of shares and number of outstanding number of shares on the balance sheet.