The lower portion of the 2006 income statement for McDonald's follows (dollars in millions):
REQUIRED:
a. Why is there a distinction between net earnings from continuing operations and net earnings from discontinued operations?
b. Estimate the number of common shares outstanding.
c. Why is there a distinction between basic net earnings per share and diluted net earnings per share?
d. Estimate the number of common shares that would be outstanding if all potentially dilutive securities were converted to common shares.