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The 2010 annual report for Fortune Brands, the seller of Pinnacle golf balls and

ID: 2489507 • Letter: T

Question

The 2010 annual report for Fortune Brands, the seller of Pinnacle golf balls and MasterLock padlocks, disclosed that 750 million shares of common stock have been authorized. At the end of 2009, 150 million shares had been issued and the number of shares in treasury stock was 84 million. During 2010, 2 million common shares were reissued from treasury, and 1 million common shares were purchased for treasury stock. Required: Determine the number of common shares (a) issued, (b) in treasury, and (c) outstanding at the end of 2010.

Explanation / Answer

The amounts at the end of 2010 are:

(a) issued stock

2009 had been 150 million shares issued and the board didn't issued more share from the 750 million shares authorized. Thus end of 2010 it is still 150 million shares issued.150 million shares

(b) treasury stock

84million - 2 million + 1 million = 83 million shares

(c) outstanding stock

at the end of 2008 = 150 million - 84 million + 2 million - 1 million = 67 million shares