Sheridan Corporation had 324,000 shares of common stock outstanding on January 1, 2017. On May 1, Sheridan issued 27,600 shares. (a) Compute the weighted-average number of shares outstanding if the 27,600 shares were issued for cash.

Weighted-average number of shares outstanding

(b) Compute the weighted-average number of shares outstanding if the 27,600 shares were issued in a stock dividend.

Weighted-average number of shares outstanding