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givi [52]
3 years ago
14

The balance sheet for Crutcher Corporation reported 290,000 shares outstanding, 390,000 shares authorized, and 29,000 shares in

treasury stock. Compute the maximum number of new shares that Crutcher could issue.
Business
1 answer:
tamaranim1 [39]3 years ago
8 0

Answer:

71,000 Shares Can be Issued by Crutcher

Explanation:

Step 1:

The authorised Shares represent the maximum shares Crutcher is allowed to issue at any point in time.

Since, 290,000 are outstanding and 29,000 are alread in treasury stock, then the maximum number of new issues will be determined by the following formula

Authorised Share- Outstanding Shares-Treasury Stock

390,000-290,000-29,000= 71,000 Shares

or Authorised Share - (Outstanding Shares + Treasury Stock)

390,000- 319,000)= 71,000 Shares

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