Final answer:
The weighted average number of shares outstanding for Carla Vista Limited for the year ended December 31, 2023 is 70,500 shares. This is calculated by prorating the shares based on the time they were outstanding during the year and summing up these amounts.
Step-by-step explanation:
To calculate the weighted average number of shares outstanding for Carla Vista Limited for the year ended December 31, 2023, follow these steps:
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- Start with the initial number of shares outstanding, which is 54,000 from January 1st to March 1st.
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- On March 1st, 31,500 shares were issued, increasing the total to 85,500 shares until July 1st.
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- On July 1st, 19,500 shares were repurchased and cancelled, reducing the number to 66,000 shares for the rest of the year.
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- Multiply the number of shares by the portion of the year they were outstanding and add these amounts together to get the weighted average.
For example, from January 1 to March 1 (2/12 of the year), the company had 54,000 shares. From March 1 to July 1 (4/12 of the year), it had 85,500 shares. From July 1 to December 31 (6/12 of the year), it had 66,000 shares.
The calculation would be:
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- (54,000 * 2/12) = 9,000
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- (85,500 * 4/12) = 28,500
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- (66,000 * 6/12) = 33,000
Adding them up: 9,000 + 28,500 + 33,000 = 70,500
Therefore, the weighted average number of shares outstanding for the company is 70,500 shares.