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11:35 AM 39% . " v2.cengagenow.com Apple Disney ESPN Yahoo! Bing Google Yahoo Apple Bing Google Airlines &... Allegiant A..Low Fares... Cengag... Learning Outlook W... Home I STI... Favorites Ch 16 Assignment #2 Weighted Average Shares At the beginning of 2014, Hardin Company had 220,000 shares of $10 par common stock outstanding. During the year, it engaged in the following transactions related to its common stock Mar. 1 June 1 uly 1 Aug. 31 Oct. 31 Nov. 30 Issued 45,000 shares of stock at $22 per share. Issued a 15% stock dividend. Issued 10,000 shares of stock at $27 per share. Issued a 2-for-1 stock split on outstanding shares, reducing the par value to $5 per share. Reacquired 95,000 shares as treasury stock at a cost of $30 per share. Reissued 45,000 treasury shares at a price of $33 per share. Required: 1. 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 549,917X shares 2. Determine the number of common shares outstanding at December 31, 2014 500,000X shares Feedback Check My Work 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 heck My Work 0 more Check My Work uses remaining Previous Next Assignment Score: 30% Email Instructor Save and ExitSubmit t for Grading

Explanation / Answer

Since, multiple questions have been posted, I have answered the first one (Hardin Company).

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Part 1)

The weighted average number of shares is calculated as below:

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Part 2)

The number of common shares outstanding as at 31/12/2014 would be 579,500 shares (as calculated in Column 2 of above table).

Date Number of Shares (A) Number of Months for which Shares Remain Outstanding before Next Event (B) Total Number of Months (C) Weighted Shares (A*B/C) 01-01-2014 220,000 2 12 36,667 01-03-2014 265,000 (220,000 + 45,000) 3 12 66,250 01-06-2014 304,750 (265,000 + 15%*265,000) 1 12 25,396 01-07-2014 314,750 (304,750 + 10,000) 2 12 52,458 31-08-2014 629,500 (314,750*2/1) 2 12 104,917 31-10-2014 534,500 (629,500 - 95,000) 1 12 44,542 30-11-2014 579,500 (534,500 + 45,000) 1 12 48,292 Weighted Average Number of Shares Outstanding 378,521

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