Question

The 2016 annual report for Mega Mills disclosed that 1 billion shares of common stock have been authorized. At the end of 2015, 810 million shares had been issued and the number of shares in treasury stock was 111 million. During 2016, the only common share transactions were that 19 million common shares were reissued from treasury and 30 million common shares were purchased and held as treasury stock. Required: Determine the number of common shares (a) issued, (b) in treasury, and (C) outstanding at the end of 2016. (Enter your answers in millions.) Number of Common Shares (in millions) (a) (b) (c) Issued Stock Treasury Stock Shares Outstanding

Answer 1

	CALCULATION OF SHARES OUTSTANDING AT THE END OF 2015
	Issued stock at the end of 2015 number of shares issued =	$                              810	Million
	Less: Treasury stock	$                              111	Million
	Shares outsanding	$                              699	Million
		Amount is in million
	CALCULATION OF SHARES OUTSTANDING AT THE END OF 2016	Issued Stock	Treasury Stock	Shares Outstanding
	Opening balance	$                              810	$                           111	$                                 699
	Trans - 1: 19 Million common shares were reissued from treasury		$                           -19	$                                    19
	Trans - 1: 30 Million shares purchase for treasury		$                             30	$                                  -30
	Total	$                              810	$                           122	$                                 688
	ANSWER:	No. of Common Shares (In Million)
	(A) Issued Stock	$                              810
	(B) Treasury Stock	$                              122
	(C') Shares Outstanding :	$                              688