Face 2 Face Corporation reports 220 outstanding shares, 1,100 authorized shares,

Question

Face 2 Face Corporation reports 220 outstanding shares, 1,100 authorized shares, and 110 shares of treasury stock. How many shares are issued?

The balance sheet for Crutcher Corporation reported 150,000 shares outstanding, 250,000 shares authorized, and 15,000 shares in treasury stock. Compute the maximum number of new shares that Crutcher could issue.

Netpass Company has 850,000 shares of common stock authorized, 680,000 shares issued, and 340,000 shares of treasury stock. The company’s board of directors declares a dividend of $0.90 per share of common stock. What is the total amount of the dividend that will be paid?

Explanation / Answer

1. Face 2 Face Corporation reports issued shares;

Outstanding shares=220 shares

Add treasury stock =110 shares

Total issued shares=330 shares

2. the maximum number of new shares that Crutcher could issue is 85000 shares computed as following

Authorized shares =250000 shares

Less Outanding shares =150000 shares

Less treasury stock =15000 shares

Maximum shared which can be issued= 85000 shares

3. total amount of the dividend that will be paid by Netpass Company =$306000

Explanation;

Outstanding shares=issued shares-treasury stock

=680000-340000

=340000

Dividend will be allowed on outstanding shares only

So dividend paid =340000×.90

=306000

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