Question

The following partial information is taken from the comparative balance sheet of Levi Corporation: Shareholders’ equity 12/31/2018 12/31/2017 Common stock, $5 par; 32 million shares authorized; 27 million shares issued and 21 million shares outstanding at 12/31/2018; and ____million shares issued and ____shares outstanding at 12/31/2017. $ 135 million $ 105 million Additional paid-in capital on common stock 519 million 391 million Retained earnings 196 million 156 million Treasury common stock, at cost, 6 million shares at 12/31/2018 and 4 million shares at 12/31/2017 (71 million) (49 million) Total shareholders’ equity $ 779 million $ 603 million How many of Levi's common shares were outstanding on 12/31/2017? Multiple Choice 26 million. 21 million. 17 million.

Answer 1

17 million

Step-by-step explanation:

The computation of the outstanding common shares is shown below:

= Number of common shares outstanding - treasury common stock

where,

Number of common shares outstanding = Total value of the common shares ÷ par value of the share

= $105 million ÷ $5

= 21 million

And, the treasury common stock is 4 million

Now put these values to the above formula

So, the value would equal to

= 21 million - 4 million

= 17 million