Question

In a recent annual report, Fourth Wall Inc. (formerly Greencube) disclosed that 60,900,000 shares of common stock have been authorized. At the beginning of the fiscal year, a total of 35,883,092 shares had been issued and the number of shares in treasury stock was 7,261,269. During the year, 563,265 additional shares were issued, and the number of treasury shares increased by 3,079,188 Determine the number of shares outstanding at the end of the year. (Amounts to be deducted should be indicated by a minus sign.)

Answer 1

The number of shares outstanding at the end of the year are 26,105,900 shares.

Step-by-step explanation:

At the beginning of the fiscal year:

Shares issued: 35,883,092 (this includes both outstanding shares and those which were reacquired by Fourth Wall Inc. or are under the Treasury)

Treasury stock: 7,261,269 (these were previously issued shares but are subsequently reacquired by Fourth Wall Inc., hence, are no longer outstanding shares)

Outstanding shares at the beginning: 28,621,823 (35,883,092 - 7,261,269)

During the year:

Additional shares issued: 563,265

Additional shares in Treasury: 3,079,188

At the end of the year:

Total shares issued: 36,446,357 (35,883,092 + 563,265)

Total treasury shares: 10,340,457 (7,261,269 + 3,079,188)

Total shares outstanding at the end of the year: 26,105,900 (36,446,357 - 10,340,457)