Blue Bay Logistics Ltd s shareholders equity accounts

were as follows #8682

Blue Bay Logistics Ltd s shareholders equity accounts were as follows

Blue Bay Logistics Ltd.'s shareholders' equity accounts were as follows at the beginning of the
current fiscal year, April 1, 2011:

$6 cumulative preferred shares (20,000 shares issued).............$1,800,000

Common shares (500,000 shares issued)...............................3,750,000

Contributed capital-reacquisition of common shares...................50,000

Retained earnings.........................................................1,500,000

Total shareholders' equity..............................................$7,100,000

During the year, the following selected transactions occurred:

June 1 Reacquired and retired 2,000 common shares for $10 per share.

July 1 Issued 50,000 common shares for $11 per share.

Feb. 28 Declared the annual preferred dividend to shareholders of record on March 12, payable
on April 1.

Mar. 31 Profit for the year ended March 31, 2012, was $1,016,750.

Instructions

(a) Calculate the weighted average number of common shares for the year.

(b) Calculate the earnings per share.

(c) Why is it important to use profit available to common share holders in the calculation of
earnings per share? Why not just use profit?

Blue Bay Logistics Ltd s shareholders equity accounts were as follows

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