Answer:
Marigold Corp.
Weighted-average number of shares outstanding as of December 31, 2021:
Date Outstanding Shares Number Weight Weighted
January 1, Beginning 461,000 12/12 461,000
February 1 Issue of new 124,000 11/12 113,667
March 1 Stock dividend 58,500 10/12 48,750
May 1 Treasury stock -104,000 8/12 -69,333
June 1 Issue 3-for-1 split 1,618,500 7/12 944,125
October 1 Reissue of Treasury Stock 61,000 3/12 15,250
Dec. 31 Total Outstanding shares 2,219,000 12 1,513,459
Explanation:
a) Data and Calculations:
Date Outstanding Shares Number
January 1, Beginning 461,000
February 1 Issue of new 124,000
March 1 Stock dividend 58,500 (10% of 461,000 + 124,000)
May 1 Treasury stock -104,000
June 1 Issue 3-for-1 split 1,618,500 (539,500 x 3)
October 1 Reissue of Treasury Stock 61,000
Dec. 31 Total Outstanding shares 2,219,000
b) The months remaining to the end of the year are used to assign weights to the shares.
