15. The following partial information is taken from the comparative balance shee

Question

15.

The following partial information is taken from the comparative balance sheet of Levi Corporation:

(80 million)  

(58 million)

$768 million   

$587 million   

What was the average price (rounded to the nearest dollar) of the additional shares issued by Levi in 2016?

a) $5 per share

b) $27 per share

c) $40 per share

d) cannot be determined from the given information

16.

The following partial information is taken from the comparative balance sheet of Levi Corporation:

(76 million)  

(35 million)

$772 million   

$604 million   

What was the average price of the additional treasury shares purchased by Levi during 2016? (Round your answer to 2 decimal places.)

a) $10.25 per share

b) $10.86 per share

c) $11.67 per share

d) none of these answer choices is correct

The following partial information is taken from the comparative balance sheet of Levi Corporation:

Explanation / Answer

1. average price of the additional shares issued by Levi in 2016

b) $27 per share

     Average price = (increase in common stock proceed + increase in additonal paid up capital) / increase in share issued

   = (115 - 85) + (395- 528) / (23- 17) share

= 30 + 133 / 6 share

= 163 / 6

= $27 per share

Note:- common stock issued in 2015 = $85000000 / $5 par value

   = 17000000 share

2.    average price of the additional treasury shares :

   a) $10.25 per share

average price = increase in treasury common stock / increase in treasure share

= (76 - 35) / (7 - 3) share

= 41 / 4

= $10.25 per share

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