Respuesta :
Answer:
The weighted average shares outstanding for the year is 859,000.
Explanation:
Jan.1: outstanding shares 790,000: (790,000 x 12) = 9,480,000
May.1: Issued additional 121,000 shares: (121,000 x 8) =968,000
Sep.1: Purchase 60,000 shares of T.S: (60,000 x 4) = (240,000)
Nov.1: Issued additional 50,000 shares: (50,000 x 2) =100,000
= 10,308,000
Note: We take the number of months from the transaction date to the months remaining in the year end.
Weighted Average Outstanding Shares = 10,308,000
12
Weighted Average Outstanding Shares = 859,000
Answer:
The weighted average number of shares for the year based on the below computation is 859,000 shares
Explanation:
The analysis of weighted average of number of shares for Crane company is computed below laying particular emphasis on the time of the share transactions:
Dates shares weight weighted average
Jan-Dec 790,000 12/12 790,000
May-Dec 121,000 8/12 80,666.67
Sep-Dec (60,000) 4/12 (20,000)
Nov-Dec 50,000 2/12 8,333.33
total weighted average number of shares 859,000
This is number of shares that are entitled to earnings during the year that is the number of shares applicable to earnings per share
