, Indigo Corp. had 4834,00 shares of common stock outstanding. Durng 2018, t had

Question

, Indigo Corp. had 4834,00 shares of common stock outstanding. Durng 2018, t had the folowing transactions tha affected the Common Stock account. February 1 March 1 May 1 June 1 October 1 Reissued 61,000 shares of treasury stock Issued 116,000 shares Issued a 10% stock dividend Acquired 99,000 shares of treasury stock Issued a 3-for-1 stock split Determine the weighted-average number of shares outstanding as of December 31, 2018. The weighted-average number of shares outstanding LINK TO TEXT Assume that Indigo Corp. earned net income of $3,296,000 during 2018. In addition, it had ios,000 shares of 9%, $100 par nonconvertible, noncumulative preferred stock outstanding for the entire year. Because of liquidity considerations, however, the company did not declare and pay a preferred dividend in 2018. Compute earnings per share for 2018, using the weighted-average number of shares determined in part (a). (Round answer to 2 decimal places,e.g.$2.55.) Earnings Per Share s

Explanation / Answer

2)

2b)

3)

Dates Outstanding Period Shares Outstanding Weighted Shares Opening Balance 1st Jan-1st Feb 1 Month                    484,000.00                 40,333.33 Issued Shares 1st Feb-1st March 1 Month                    600,000.00                 50,000.00 10% Stock Dividend 1st march -1st may 3 Months                    660,000.00              165,000.00 Acquired back 1st May-1st June 1 Month                    561,000.00                 46,750.00 Stock split 3:1 1st June-1st october 4 Months                1,683,000.00              561,000.00 Issued Shares 1st Oct-Dec 31 3 Months                1,744,000.00              436,000.00 Weighted Average Number of Shares Outstanding           1,299,083.33

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