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; 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.

Answer 1

C. 5 million

Step-by-step explanation:

Answer 2

Correct option is (c)

Step-by-step explanation:

Given:

Shares outstanding in 2017 = Issued shares - shares held in treasury

Issued shares in 2017 = 9 million

Shares held in treasury in 2017 = 4 million

Substitute the values in the above formula:

Shares outstanding in 2017 = 9 million - 4 million = 5 million

So, 5 million shares were outstanding as on 12/31/2017