B E H D F G 7 Question 6: Weighted Average Number of Common Shares Outstanding (6 marks) 2 3 You, the Senior Accountant of Ryder Co. are calculating the weighted average number of common shares for the year ended December 31, 2020. The following is a summary of Ryder Co's common share activities for the year ending 4 December 31, 2020: 5 250,000 common shares were issued and outstanding on January 1, 2020. 6 15,000 common shares were issued for cash on March 1, 2020. 7 A 2-for-1 stock split of Ryder Co.'s common shares occurred on April 30, 2020. 8 75,000 common shares were issued for cash on November 1, 2020. REQUIRED: Calculate the weighted average number of common shares using the workspace provided. Round your final answer ONLY. Once completed, answer the following multiple-choice questions. No marks are given for completing the workspace. All multiple-choice answers must be completed in EXCEL. Select the best answer from the drop-down lists in the blue boxes provided below the question. (11 How does the 2.for.1 stock colit imnact the ananina enmmon chara halance nf 250 common charae? Q6 07 08 Q9 Q5-REQUIRED = A Cover Sheet Q1 Q2 Q3 Q4 QS-DATA D 11 12 (1). How does the 2-for-1 stock split impact the opening common share balance of 250,000 common shares? 13 A. 250,000 common shares will be added to the opening balance as an adjustment. 14 B. 25,000 common shares will be added to the opening balance as an adjustment. C. Stock splits only impact common shares from the date of announcement till the end of the 15 year. 16 D. 250,000 common shares will be subtracted from the opening balance as an adjustment. 17 #1 Answer: 18 19 (2). How does the 2-for-1 stock split impact the March 1st issuance of 15,000 common shares? A. Stock splits only impact common shares from the date of announcement till the end of the 20 year. 21 B. A positive adjustment (increase). 22 C. A negative adjustment (decrease). D. No impact as stock splits do not impact the weighted average number of common shares 23 outstanding 24 #2 Answer: = A Cover Sheet Q1 Q2 Q3 Q4 Q5-DATA 05-REQUIRED Q6 Q7 Q8 09 + Calculation Mode: Automatic Workbook Statistics 20 27 28 (3). How does the 2-for-1 stock split impact the 75,000 common shares issued on November 1, 2020? A. 75,000 common shares will be added as an adjustment. B. 75,000 common shares will be subtracted as an adjustment. C. Stock splits only impact common shares up to the date of announcement and do not adjust 29 any thereafter. D. Stock splits only impact common shares from the date of announcement till the end of the 30 year. 31 83 Answer: 32 33 (4). What is the fraction of the year (# of months) to consider for the 75,000 common shares issued? 34 A. 2/12 35 B. 12/12 36 C. 1/12 37 D. 10/12 38 #4 Answer: > Cover Sheet Q1 Q2 Q3 Q4 OS-DATA 05-REQUIRED Q6 Q7 08 09 + Calculation Mode: Automatic Workbook Statistics . 10/12 38 39 40 (5). (2 marks) What is the weighted average number of common shares calculated? 41 A. 275,000 42 B. 537,500 43 C. 605,000 44 D. 436,666 45 46 END OF QUESTION 6 47 48 49 50 51 52 53
