Question

You note a companys balance sheet that it claims 4,000,000 shares authorized, 2,500,000 shares issued, and...

You note a companys balance sheet that it claims 4,000,000 shares authorized, 2,500,000 shares issued, and 1,500,000 outstanding. How many shares of treasury stock, if any, does the company currently have?

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Answer:

Treasury stock refers to the shares that the company has reacquired from the market.

The number of shares outstanding refers to the shares issued to the investors and is used for EPS calculations.

Shares outstanding = Shares issued (-) treasury stock

1,500,000 = 2,500,000 (-) Treasury Stock

Treasury Stock = 1,000,000 shares

Note:

The authorized shares do not have any usage in the calculations.

In case of any doubt or clarification, feel free to come back via comments.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Suppose a company had 100,000 shares authorized, 60,000 shares issued, and no shares in treasury as...
Suppose a company had 100,000 shares authorized, 60,000 shares issued, and no shares in treasury as of January 1st. If the company had the stock transactions indicated below during the year, how many shares would be outstanding as of December 31st? • February 15th – repurchased 2,000 shares for treasury • April 30th – declared a 20% stock dividend • July 1st – repurchased another 1,000 shares for treasury • September 30th – declared a 3-for-1 stock split
5. Common stock, $2 par value, 1,000,000 shares issued, 500,000 shares outstanding, 3,000,000 shares authorized. a....
5. Common stock, $2 par value, 1,000,000 shares issued, 500,000 shares outstanding, 3,000,000 shares authorized. a. Calculate the dollar amount that will be presented opposite this caption on the balance sheet. b. Calculate the total amount of a cash dividend of $0.50 per share. c. Calculate the number of shares of treasury stock.
The authorized share capital of the Alfred Cake Company is 110,000 shares. The equity is currently...
The authorized share capital of the Alfred Cake Company is 110,000 shares. The equity is currently shown in the company’s books as follows: Common stock ($2 par value) $ 73,000 Additional paid-in capital 23,000 Retained earnings 43,000 Common equity $ 139,000 Treasury stock (2,000 shares) 17,000 Net common equity $ 122,000 a. How many shares are issued? b. How many shares are outstanding? c. How many more shares can be issued without the approval of shareholders?
The authorized share capital of the Alfred Cake Company is 120,000 shares. The equity is currently...
The authorized share capital of the Alfred Cake Company is 120,000 shares. The equity is currently shown in the company’s books as follows: Common stock ($2 par value) $ 69,000 Additional paid-in capital 19,000 Retained earnings 39,000 Common equity $ 127,000 Treasury stock (4,000 shares) 13,000 Net common equity $ 114,000 a. How many shares are issued? b. How many shares are outstanding? c. How many more shares can be issued without the approval of shareholders?
he authorized share capital of the Alfred Cake Company is 100,000 shares. The equity is currently...
he 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) $ 63,000 Additional paid-in capital 13,000 Retained earnings 33,000 Common equity $ 109,000 Treasury stock (3,000 shares) 7,000 Net common equity $ 102,000 a. How many shares are issued? b. How many shares are outstanding? c. How many more shares can be issued without the approval of shareholders?
Nike has 700,000 authorized shares of $2 par value common stock. The company issued 450,000 shares...
Nike has 700,000 authorized shares of $2 par value common stock. The company issued 450,000 shares and has additional paid-in capital-in-excess of par value of $1,600,000. The company does not have any treasury stock. North Bend Co. declared a 15 percent stock dividend when the stock was selling for $10 per share. By how much should the Additional Paid-in-Capital account increase as a result of the stock dividend:
Racer Corporation's December 31, 2017 balance sheet showed the following: 6% preferred stock, $20 par value,...
Racer Corporation's December 31, 2017 balance sheet showed the following: 6% preferred stock, $20 par value, cumulative,      40,000 shares authorized; 25,000 shares issued $     500,000 Common stock, $10 par value, 4,000,000 shares authorized;      2,600,000 shares issued, 2,560,000 shares outstanding 26,000,000 Paid-in capital in excess of par value – preferred stock 80,000 Paid-in capital in excess of par value – common stock 37,000,000 Retained earnings 12,200,000 Treasury stock (30,000 shares) 840,000 Racer's total paid-in capital was Question 9 options:...
Following is the stockholders’ equity section of the Saints, Inc. 20X8 balance sheet ($ in thousands):...
Following is the stockholders’ equity section of the Saints, Inc. 20X8 balance sheet ($ in thousands): 20X8 Common stock, $0.0001 par value (shares authorized—240,000,000, shares issued – 73,549,872) 7 Additional paid-in capital 551,004 Treasury stock, at cost 4,223,670 shares (218,692) Retained earnings 1,063,633 Accumulated other comprehensive loss     (1,345) Total shareholders’ equity $1,394,607 Required:. a. Saints has 240 million shares of common stock authorized, but only 73,549,872 shares issued. Why is there a difference between these two numbers? b. Verify...
Q.8 Multiple Choice During the year, Todd Corporation issued 200 shares of $20 par value common...
Q.8 Multiple Choice During the year, Todd Corporation issued 200 shares of $20 par value common stock for $50 a share. A total of 500 shares were authorized. In addition, the company purchased 75 shares of treasury stock at $44 a share. Which of the following best presents the related lines in the stockholders’ equity section of the company’s balance sheet? Multiple Choice A Common stock, $20 par value, 500 shares authorized, 200 shares issued, 425 outstanding $ 8,500 Paid...
A company has 20 million common shares authorized and 2.5 million shares issued. The par value...
A company has 20 million common shares authorized and 2.5 million shares issued. The par value is $1 per share and the market price is $30 when the company declares a 4-for-1 stock split. Which of the following is correct? _______ A) For every one share of stock owned, a shareholder will receive four shares and will now own 5 shares of stock. B) The company will be unable to declare a 4-for-1 split because it does not have enough...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT