Question

Total stockholders' equity includes $50,000 of common stock with a stated value of $0.50, and 5,000 shares of treasury stock with a total cost of $25,000. How many total shares are outstanding

Answer 1

Answer:

Common stock outstanding = $50,000/$0.5 = 100,000 shares

Treasury stock outstanding                              = 5,000 shares

Total shares outstanding                                    105,000 shares

Explanation:

Total shares outstanding is the aggregate of common stock outstanding and treasury stock outstanding. Common stock outstanding is derived by dividing the total value of common stock by par value of common stock.