Weighted Average Shares

At the beginning of the current year, Hardin Company had 20,000 shares of $10 par common stock outstanding. During the year, it engaged in the following transactions related to its common stock, so that at year-end it had 63,800 shares outstanding:

Apr. 2		Issued 5,000 shares of stock.
June 4		Issued 4,000 shares of stock.
July 1		Issued a 10% stock dividend.
Sept. 28		Issued a 2-for-1 stock split, reducing the par value to $5 per share.
Oct. 3		Reacquired 1,000 shares as treasury stock.
Nov. 27		Reissued the 1,000 shares of treasury stock.

Required:

Determine the weighted average number of shares outstanding for computing the current earnings per share. Round your interim computations and final answer for the number of shares to nearest whole number. Weighted average shares outstanding: _______ shares

Note

You should assume (for earnings per share computations) that a stock dividend or split occurred at the beginning of the earliest comparative period. Then you should also assume that all stock transactions between this beginning date and the actual date of the stock dividend or split included the additional shares resulting from the assumed dividend or split.

The following partially completed schedule will help you to organize the information for this exercise.

Weighted average shares with stock split and stock dividend

20,000	x	1.10	x	2	=	44,000	x	3/12	=	11,000
25,000	x	1.10	x	2	=	?	x	?		?
29,000		?		?
?
?
Total										?