Need help with Accounting Cortez, Inc.?

The annual income statements for Cortez, Inc., as reported when they were initially published in 2003, 2004, and 2005 follow: 2003 2004 2005 Net sales . . . . . . . . . . . . . . . . . . . . . . . . . . $370,000 $425,000 $412,500 Operating expenses . . . . . . . . . . . . . . . . . . .232,500 260,000 245,500 Income from continuing operations . . . . . . 137,500 165,000 167,000 Loss on discontinued segment . . . . . . . . . . (52,500) — — Income before extraordinary items . . . . . . . . 85,000 165,000 167,000 Extraordinary gain (loss) . . . . . . . . . . . . . . . — 33,000 (70,000) Net income . . . . . . . . . . . . . . . . . . . . . . . . $ 85,000 $198,000 $ 97,000 The company also experienced changes in the number of outstanding shares from the following events: Outstanding shares on December 31, 2002 . . . . . . . 40,000 2003 Treasury stock purchase on April 1 . . . . . . . . . . . . . - 4,000 Issuance of new shares on June 30 . . . . . . . . . . . . . . + 12,000 10% stock dividend on October 1 . . . . . . . . . . . . . . + 4,800 Outstanding shares on December 31, 2003 . . . . . . . 52,800 2004 Issuance of new shares on July 1 . . . . . . . . . . . . . . . + 16,000 Treasury stock purchase on November 1 . . . . . . . . . - 4,800 Outstanding shares on December 31, 2004 . . . . . . . 64,000 2005 Issuance of new shares on August 1 . . . . . . . . . . . . . + 20,000 Treasury stock purchase on September 1 . . . . . . . . . - 4,000 3-for-1 stock split on October 1 . . . . . . . . . . . . . . . +160,000 Outstanding shares on December 31, 2005 . . . . . . . 240,000 Need to do: 1. Compute the weighted average of the common shares outstanding for year 2003. 2. Compute the EPS component amounts to report with the year 2003 income statement for: income from continuing operations, the loss on discontinued segment, and net income. 3. Compute the weighted average of the common shares outstanding for year 2004. 4. Compute the EPS component amounts to report with the year 2004 income statement for: income from continuing operations, the extraordinary gain, and net income. 5. Compute the weighted average of the common shares outstanding for year 2005. 6. Compute the EPS component amounts to report with the year 2005 income statement for: income from continuing operations, the extraordinary loss, and net income. Analysis Component 7. Explain how you would use the EPS data from part 6 to predict EPS for 2006 Hi, Sandy I did all of the questions except number 6 can you help me with this one? email= rhover992003@yahoo.com thank you.

3 months ago - 1 answers