Question

Kiwi Charter Corp. reported $1,127.200 of profit for 2020. On November 2, 2020, it declared and paid the annual preferred dividends of $139,000. On January 1, 2020, Kiwi had 72.000 and 180,000 outstanding preferred and common shares, respectively. The following transactions changed the number of shares outstanding during the year: Feb. 1 Declared and issued a 20% common share dividend. Apr. 3e Sold 127,eee common shares for cash. May 1 Sold 40,000 preferred shares for cash. Oct. 31 Sold 26,eee common shares for cash. a. What is the amount of profit available for distribution to the common shareholders? Earnings available to common shareholders $ 988,200 b. What is the weighted average number of common shares for the year? Weighted average outstanding sharus

Answer 1

b) Weighted average number of Common shares

		Weighted share
Jan 1	180000*1.2*1/12	18000
Feb 1	180000*1.2*3/12	54000
Apr 30	343000*6/12	171500
Oct 31	369000*2/12	61500
Total		305000

So answer is 305000 Shares