Question

n a recent annual report, Rosh Corporation disclosed that 60,000,000 shares of common stock have been authorized. At the beginning of the fiscal year, a total of 36,356,357 shares had been issued and the number of shares in treasury stock was 7,171,269. During the year, 558,765 additional shares were issued, and the number of treasury shares increased by 3,034,188. Determine the number of shares outstanding at the end of the year. (

Answer 1

Answer: 26,709,665 shares.

Explanation:

Treasury stock refer to company stock that have to repurchased by the company. They are no longer to be counted amongst the shares outstanding.

At the beginning of the year 36,356,357 shares were issued and during the year, 558,765 more shares were issued.

In total,

= 36,356,357 + 558,765

= 36,915,122 shares were issued

Treasury stock amounted to,

= 7,171,269 + 3,034,188 (increase during the year)

= 10,205,457

To find the total outstanding shares we subtract the Treasury stock from the shares issued.

= 36,915,122 - 10,205,457

= 26,709,665

The number of shares outstanding at the end of the year is 26,709,665 shares.

Answer 2

Answer:

Issued shares:  

Beginning shares                                    3,63,56,357

Additional shares issued                            5,58,765

                                                                  3,69,15,122

Treasury stock:

Beginning                                             -71,71,269

Purchased during the year                      -30,34,188

Treasury stock at the end of the year      -1,02,05,457

Shares outstanding                                      4,71,20,579