Reconciling Common Stock and Treasury Stock Balances Following is the stockholde
ID: 2548217 • Letter: R
Question
Reconciling Common Stock and Treasury Stock Balances
Following is the stockholders' equity section from the Abercrombie & Fitch Co. balance sheet.
(a) Show the computation to yield the $1,033 balance reported for common stock. Enter complete number for number of shares (with all zeros).
(Answer
shares) x ($Answer
) = $1,033 thousand
(b) How many shares are outstanding at 2013 fiscal year-end?
Answer
shares
(c) Use the common stock and paid-in capital accounts to determine the average price at which Abercrombie & Fitch issued its common stock. (Round your answer to two decimal places.)
$Answer
(d) Use the treasury stock account to determine the average price Abercrombie & Fitch paid when it repurchased its common shares. (Round your answer to two decimal places.)
$Answer
net of tax (13,288) 6,291 Treasury stock at average cost: 24,855 and 17,662 shares at February 2, 2013 and
January 28, 2012, respectively (1,140,009) (834,774) Total shareholders' equity $ 1,818,268 $ 1,931,335
Explanation / Answer
103,300 shares * $0.01 par value =$1,033
Outstanding shares = issued shares – repurchased shares
outstanding shares = 103,300,000 – 24855,000
Outstanding shares = 78445000 shares
Proceeds from sale =common stock + Additional paid in capital
= 1,033,000+403,271,000
= $404,304,000
The average price at which abercomie issued its common stock is
$404,304,000/103,300,000 shares =$3.91
$1,140,009/24855 shares = $45.87
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