Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Flounder Corporation began its latest fiscal year on January 1, 2021, with 470,000 common shares outstanding. During the year, the following events occurred: On February

Flounder Corporation began its latest fiscal year on January 1, 2021, with 470,000 common shares outstanding. During the year, the following events occurred:

On February 1, Flounder sold 15,000 additional common shares.
The company declared and issued a 25% stock dividend on March 1.
On June 1, Flounder repurchased and cancelled 3,750 common shares.
An additional 5,200 common shares were issued on July 1.
On September 1, Flounder declared and issued a three-for-one stock split.
On December 1, Flounder issued an additional 14,700 shares.
Following the fiscal year, Flounder declared and issued a two-for-one stock split on February 1, 2022.

The company issued its 2021 financial statements on April 30, 2022. Calculate the weighted average number of common shares that Flounder should use for calculating its EPS numbers for 2021.

Weighted average number of common shares

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Managerial Accounting For Clarion University Of Pennsylvania

Authors: Ray H. Garrison

14th Edition

0077577515, 978-0077577513

More Books

Students also viewed these Accounting questions

Question

What does multiparametered mean? Can you give an example?

Answered: 1 week ago