Brief Exercise 1610 Oriole Corporation had 116400 shares of

Brief Exercise 16-10 Oriole Corporation had 116,400 shares of stock outstanding on January 1, 2017.On May 1, 2017, Oriole issued 63,600 shares. On July 1, Oriole purchased 9,120 treasury shares, which were reissued on October 1 Compute Oriole\'s weighted-average number of shares outstanding for 2017. Weighted-average number of shares outstanding s Click if you would like to Show Work for this question: Open Show Work

Solution

Solution:

Dates Outstanding 1/1 - 5/1
Shares Outstanding x Fraction of Year = Weighted Shares
116400 x 4/12 = 38800 weighted shares
Date Outstanding 5/1 - 7/1
180000 x 2/12 = 30000 weighted shares
Date Outstanding 7/1 - 10/1
170880 x 3/12 = 42720 weighted shares
Date Outstanding 10/1 - 12/31
180000 x 3/12 = 45000
Total (38800 + 30000 + 42720 + 45000) = 156520

Note:

116400 + 63600 = 180000

180000 – 9120 = 170880