Earnings per Share

Computing Weighted-Average Number of Common Shares Outstanding with a Stock Split

Thomas Company reported the following data:

Date

Event

Number of Shares

January 18

Common shares outstanding

150,000

May 18

Issurance of additional shares

75,000

July 18

2-for-1 stock split

November 18

Issurance of additional shares

15,000

The firms year-end is December 31.

Use the blue shaded areas on the ENTERANSWERS tab for inputs.

Always use cell references and formulas where appropriate to receive full credit. If you copy/paste from the Instructions tab you will be marked wrong.

Determine the weighted-average number of common shares outstanding for the year.

(Always use cell references and formulas where appropriate to receive full credit. If you copy/paste from the Instructions tab you will be marked wrong.)

Date and Event

Number of Shares Outstanding

Weighted-average Shares Outstanding

1/1 Balance

5/1 New Issue

7/1 Two for one split

11/1 New Issue

12/31 Shares Outstanding