Question

On January 1, 2020, Sunland Manufacturers had 270,000 common shares outstanding. On April 1, the corporation issued 27,000 new common shares to raise additional capital. On July 1, the corporation declared and distributed a 10% stock dividend on its common shares. On November 1, the corporation repurchased on the market 10,200 of its own outstanding common shares to make them available for issuances related to its key executives' outstanding stock options. Calculate the weighted average number of shares outstanding as at December 31, 2020. (Round answer to 0 decimal places, e.g. 5,255.) Weighted average number of shares outstanding shares LINK TO TEXT Assume that Sunland Manufacturers had a 1-for-10 reverse stock split instead of a 10% stock dividend on July 1, 2020. Calculate the weighted average number of shares outstanding as at December 31, 2020. (Round answer to 0 decimal places, e.g. 5,255.) Weighted average number of shares outstanding shares

Answer 1

1) Weighted Average no. of shares = 317575

No. of months outstanding 3 Months Shares Outstanding Jan - March April - June July - Oct Nov - Dec Actual Shares Outstanding 270000 1.1 297000 1.1 326700 316500 Nw Equivalent units 74250 81675 108900 52750 317575

2) Weighted Average no. of shares = 27325

No. of months outstanding Months Shares Outstanding Jan - March April - June July - Oct Nov - Dec Actual Shares Outstanding 270000 0.1 297000 0.1 29700 19500 Equivalent units 6750 7425 9900 3250 27325