Albatross Shipping had 100,000 shares of common stock outstanding on January 1. On August 31, Albatross issued an additional 30,000 common shares. Albatross had 10,000 shares of treasury stock that they held all year. The weighted average number of common shares outstanding for the year was
Outstanding number of shares is computed as the difference between the number of shares issued and those reacquired as part of treasury shares. Outstanding number of shares is also used in computing for the earnings per share and book value per share.
Answer and Explanation:
The correct answer is c. 100,000
|Account||Shares Outstanding||Period Covered||Weighted Shares|
The 120,000 outstanding shares used in August 31 is computed as:
Although the outstanding common shares is 120,000, the weighted average common shares outstanding is 100,000.
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Learn more about this topic:
from Introduction to Business: Homework Help ResourceChapter 24 / Lesson 14