Academic Integrity: tutoring, explanations, and feedback — we don’t complete graded work or submit on a student’s behalf.

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

ID: 2532101 • Letter: T

Question

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

1. A. How many of Levi's common shares were outstanding on 12/31/2017?

a.14 million.

b.9 million.

c.5 million.

d.None of these answer choices are correct.

$5 per share.

$26 per share.

$39 per share.

Cannot be determined from the given information.

C. What was the average price of the additional treasury shares purchased by Levi during 2018?

$11 per share.

$12 per share.

$12.50 per share.

None of these answer choices are correct.

Shareholders’ equity 12/31/2018 12/31/2017 Common stock, $5 par; 20 million shares authorized; 15 million shares issued
and 9 million shares outstanding at 12/31/2018; and ____ million shares issued
and ____ shares outstanding at 12/31/2017. $ 75 million $ 45 million Additional paid-in capital on common stock 520 million 392 million Retained earnings 197 million 157 million Treasury common stock, at cost, 6 million shares at 12/31/2018 and 4 million
shares at 12/31/2017 (72 million) (50 million) Total shareholders’ equity $ 720 million $ 544 million

1. A. How many of Levi's common shares were outstanding on 12/31/2017?

a.14 million.

b.9 million.

c.5 million.

d.None of these answer choices are correct.

B. What was the average price (rounded to the nearest dollar) of the additional shares issued by Levi in 2018?

$5 per share.

$26 per share.

$39 per share.

Cannot be determined from the given information.

C. What was the average price of the additional treasury shares purchased by Levi during 2018?

$11 per share.

$12 per share.

$12.50 per share.

None of these answer choices are correct.

Explanation / Answer

1. Number of Common shares issued    = (45/5)   = 9 million.

   A. Number of shares Outstanding   = (9-4)     = c. 5 million. Answer

B. Cannot be determined from the given information.

C Average price (rounded to the nearest dollar) of the additional shares issued by Levi in 2018:

      (72-50)/2 = $11 per share.     Answer