Outstanding Shares}

Rao Corporation shows the following information in the shareholders' equity section of its statement of financial position: The recorded value of common shares in the common share account is \(\$ 175,000\). Shares were initially issued for \(\$ 2.50\) per share. There were 10,000 shares purchased and cancelled at a cost of \(\$ 2.50\) per share that has not been recorded yet.

\section*{Required:}
What is the number of shares outstanding?
\section*{Exercise