Final answer:
The weighted average number of shares for calculating EPS can be found by taking into account the changes in the number of shares throughout the year. In this case, Blake Distributors had 100,000 common shares outstanding at the beginning of the year, but later issued a 5% stock dividend and retired 1,200 shares. The exact calculation of the weighted average number of shares depends on the specific time periods.
Step-by-step explanation:
The weighted average number of shares for calculating EPS can be found by taking into account the changes in the number of shares throughout the year. In this case, Blake Distributors had 100,000 common shares outstanding at the beginning of the year. On May 13, a 5% stock dividend was distributed. This means that an additional 5% of the outstanding shares were issued and distributed to the shareholders as a dividend. So, 5% of 100,000 shares is 5,000 additional shares.
On August 1, 1,200 shares were retired, which means they were repurchased and no longer outstanding. Therefore, the total number of outstanding shares would be 100,000 + 5,000 - 1,200 = 103,800 shares at the end of the year.
The weighted average number of shares would then be calculated by taking into account the number of shares outstanding for each portion of the year. For example, there were 100,000 shares outstanding for the first part of the year, then 105,000 shares (100,000 + 5,000) after the stock dividend, and finally 103,800 shares at the end of the year. The weighted average number of shares is then calculated by taking the sum of the product of the shares outstanding and the time period, and dividing it by the total time period. However, since the specific time periods are not given, it is not possible to calculate the exact weighted average number of shares.