Question

The following information relates to the number of common shares of a corporation: 100,000 authorized shares, 20,000 unissued shares, and 7,000 treasury shares

calculate the number of outstanding shares from the information given

Answer 1

The number of outstanding shares can be calculated by subtracting the number of unissued shares and treasury shares from the number of authorized shares. Using the information given:

Outstanding shares = Authorized shares - Unissued shares - Treasury shares
Outstanding shares = 100,000 - 20,000 - 7,000
Outstanding shares = 73,000

So there are 73,000 outstanding shares.