Question
he balance sheet for Crutcher Corporation reported 220,000 shares outstanding, 320,000 shares authorized, and 22,000 shares in treasury stock. Compute the maximum number of new shares that Crutcher could issue.
Answer
78,000 shares.
- Q:What is the formula for calculating maximum number of new shares that Crutcher could issue? A:Maximum number of new shares = authorized shares - outstanding shares - treasury stock.
- Q:What is the number of maximum new shares that Crutcher could issue? A:Maximum number of new shares = 320,000 - 220,000 - 22,000 = 78,000 shares.