er 14 Saved Help Save & Exit Subm Check my work The authorized share capital of

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er 14 Saved Help Save & Exit Subm Check my work The authorized share capital of the Alfred Cake Company is 100,000 shares. The equity is currently shown in the company's books as follows: Common stock ($2 par value) Additional paid-in capital Retained earning? Common equity Treasury stock (3,000 shares) Net common equity 63,000 13,000 33,000 109,000 7,000 $102,000 ook a. How many shares are issued? int Number of shares issued rint rences b: How many shares are outstanding? Outstanding shares c. How many more shares can be issued without the approval of shareholders? Number of shares issued Prev 1 of 4 Next

Explanation / Answer

a) Number of shares issued = Common Stock / Par value per share

Common Stock = $63000

Par value per share= 2 per share

Number of shares issued =63000 / 2 = 31500 shares

b) Outstanding Shares = Shares issued – Treasury shares

Shares issued = 31500 shares

Treasury shares = 3000 shares

Outstanding Shares = 31500 – 3000 = 28500 shares

c) More shares that can be issued = Authorized share capital - Outstanding Shares

Authorized share capital = 100000 shares

Outstanding Shares = 28500 shares

More shares that can be issued = 100000-28500 = 71500 shares

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