2,170,000 217,000 1,850,000 4,237,000 LINK TO TEXT LINK TO TEXT LINK TO TEXT Fli

Question

2,170,000

217,000

1,850,000

4,237,000

LINK TO TEXT

LINK TO TEXT

LINK TO TEXT

Flint Inc. uses a calendar year for financial reporting. The company is authorized to issue 8,490,000 shares of $10 par common stock. At no time has Flint issued any potentially dilutive securities. Listed below is a summary of Flint’s common stock activities.
1. Number of common shares issued and outstanding at December 31, 2015

2,170,000

2. Shares issued as a result of a 10% stock dividend on September 30, 2016

217,000

3. Shares issued for cash on March 31, 2017

1,850,000

Number of common shares issued and outstanding at December 31, 2017

4,237,000

4. A 2-for-1 stock split of Flint’s common stock took place on March 31, 2018

Explanation / Answer

1) Calculation of weighted average number of common shares for 2016 on 2017 income statement

2) Calculation of weighted average number of common shares for 2017 on 2017 income statement

3) Calculation of weighted average number of common shares for 2017 on 2018 income statement

4) Calculation of weighted average number of common shares for 2018 on 2018 income statement

a) Jan 1 2016 to Sep 30 2016 (2,170,000*9/12) 1,627,500 b) Adjustment for stock dividend 10% 1.10 c) Jan 1 2016 to Sep 30 2016 as adjusted (a*b) 1,790,250 d) Oct 1, 2016 to Dec 31, 2016 [(2,170,000+217,000)*3/12] 596,750 e) Weighted Average Shares for 2016 (d+e) 2,387,000

Related Questions

Navigate

• Browse (All)
• Browse 2
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.