[Rarequeen]

Can someone look at this ant tell me what I am doing wrong please.

The annual income statements for Cortez, Inc. as reported when they were initially published in 2003, 2004, and 2005 follow: Earnings per share calculation and presentation
2003 2004 2005
Net sales.. . ……. $370,000 425000 412500
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

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.