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16 August, 23:23

Blossom Corporation had 291,000 shares of common stock outstanding on January 1, 2017. On May 1, Blossom issued 29,400 shares. (a) Compute the weighted-average number of shares outstanding if the 29,400 shares were issued for cash. Weighted-average number of shares outstanding

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  1. 17 August, 00:58
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    Weighted-average number of shares = 310,600

    Explanation:

    Given:

    Total shares on January 1, 2017 = 291,000 (for 12 months)

    Issue of new shares On May 1, 2017 = 29,400 (For 8 months)

    Computation of Weighted-average number of shares:

    Weighted-average number of shares = [291,000 * (12/12) ] + [29,400 * (8/12) ]

    Weighted-average number of shares = [291,000 + 19,600 ]

    Weighted-average number of shares = [310,600]
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