Functions: DAYS360, SUM; Formulas: Multiply, Divide; Cell Referencing

Some cells are merged.

Using Excel to Calculate Weighted Average Number of Shares Outstanding

Student Work Area

Required: Provide input into cells shaded in yellow in this template. Use cell references with a mathematical formula to the Problem area and work area as indicated. Use the SUM function to total amounts and the DAYS360 function to calculate months between dates.

PROBLEM

Franklin Corporation had common shares on January 1, 2024. during the year, shares were repurchased and additional shares were issued. Information concerning the common shares is presented here.

Calculate the weighted average number of shares for the year ended December 31, 2024.

Common shares outstanding, January 1, 2024

20,000

Shares repurchased, March 1

5,000

Shares issued, June 1

6,000

Year end date

December 31, 2024

Shares issued, September 30

10,000

Start Date

Shares Outstanding

Number of Months

Weighted Shares

January 1, 2024

March 1, 2024

June 1, 2024

September 30, 2024

Weighted average number of shares outstanding