Question
(Weighted-Average Number of Shares) Assuming XYZ uses a calendar year for financial reporting. Th company is authorized to issue 8,000,000 shares of $10 par common
(Weighted-Average Number of Shares) Assuming XYZ uses a calendar year for financial reporting. Th company is authorized to issue 8,000,000 shares of $10 par common stock. Listed below is a summary of XYZ's common stock activities:
1. Number of common shares issued and outstanding at Dec 31,2012: 6,000,000
2. Shares issued as a result of a 25% stock dividnd on Sep 1, 2013: 1,500,000
3. Shares issued for cash on May 1, 2014: 4,000,000
- Number of common shares issued and outstanding at Dec 31, 2014: 11,500,000
4. A 6-for-1 stock split of XYZ's common stock took place on June 30, 2015
A) Compute the weighted average number of common shares used in computing earnings per common share for 2013 on the 2014 comparative income statement
B) Compute the weighted average number of common shares used in computing earnints per common share for 2014 on the 2014 comparative income statement
C) Compute the weighted average number of common shares to be used in computing earnings per common share for 2014 on the 2015 comparative income statement
D) Compute the weighted average number of common shares to be used in computing earnings per common share for 2015 on the 205 comparative income statement.
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