Question

The stockholders’ equity section of Flounder Corp.’s balance sheet at December 31 is presented here.

FLOUNDER CORP.
Balance Sheet (partial) Stockholders’ equity Paid-in capital Preferred stock, cumulative, 9,300 shares authorized, 5,600 shares issued and outstanding $ 582,400 Common stock, no par, 759,000 shares authorized, 589,000 shares issued 2,945,000
Total paid-in capital 3,527,400
Retained earnings 1,155,000
Total paid-in capital and retained earnings 4,682,400
Less:
Treasury stock (6,700 common shares) 36,000
Total stockholders’ equity $4,646,400

How many shares of common stock are outstanding?

Answer 1

The quantity of shares of common stock that are outstanding are 2,939,400.

Step-by-step explanation:

Acording to the data, we have the following:

Shares issued= 2,945,000

Shares issued and outstanding = 5,600

To calculate the quantity of shares of common stock that are outstanding we have to use the following formula:

Outstanding shares = Shares issued-Shares issued and outstanding

Therefore, Outstanding shares= 2,945,000-5,600

= 2,939,400