Question

Kress Products' corporate charter authorized the firm to sell 800,000 shares of $10 par common stock. Kress sold 237,700 shares and reacquired 1,650 of those shares. The reacquired shares were held as treasury stock. Later Kress sold an additional 16,300 shares and purchased 3,100 more treasury shares.

Answer 1

Kress Products' stock transactions resulted in 249,250 shares outstanding.

Description | Number

Authorized shares | 800,000

Shares sold initially | 237,700

Reacquired shares | 1,650

Shares sold after reacquisition | 16,300

Reacquired shares after second sale | 3,100

Shares outstanding | 1,049,250

Kress Products' corporate charter authorized the firm to sell 800,000 shares of $10 par common stock. Out of this authorized number, Kress sold 237,700 shares. Later, the company repurchased 1,650 of these shares, which were held as treasury stock. Subsequently, Kress sold an additional 16,300 shares and bought back 3,100 more treasury shares.

To determine the number of shares outstanding, we need to consider the initial issuance, the repurchase of shares, and the subsequent sale and repurchase of shares.

Initially, there were 237,700 shares outstanding. After the repurchase of 1,650 shares, the number of outstanding shares decreased to 236,050. Following the sale of 16,300 shares, the number of outstanding shares increased to 252,350. Finally, after the repurchase of 3,100 treasury shares, the number of outstanding shares settled at 249,250