The annual income statements for Cortez, Inc., as reported when they were initially published in 2003,
2004, and 2005 follow:
The company also experienced changes in the number of outstanding shares from the following events:
Required
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.
