Answer:
1,075,000
Explanation:
Weighted average numbers of share account the weightage of outstanding numbers of the share in the year based on the outstanding period.
Outstanding Balances
375,000 share for 2 months
Addition of new 750000 shares on March 1
1,125,000 shares (375,000+ 750,000) for 2 months
Stock dividend of 20% ( 1,125,000 x 20% = 225,000) on May 1
1,350,000 shares (1,125,000+ 225,000) for 3 months
Retirement of 420,000 Shares on August 1
930,000 shares (1,350,000 - 420,000) for 3 months
Issuance of 600000 shares on November 1
1530,000 shares (930,000 - 600,000) for 2 months
Schedule for weighted average numbers of shares is attached please find it.
