Kale Incorporated had 500,000 shares of common stock outstanding from January 1, 2010 through March 31, 2010. On April 1, 2010, Kale issued 500,000 more shares. On October 1, 2010, Kale issued an additional 1,200,000 shares. What was Kale's weighted average number of shares outstanding for 2010?

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Quizplus · Accepted Answer

To calculate the weighted average number of shares outstanding for the year, we need to account for the number of shares outstanding during each portion of the year and then sum these amounts.- From January 1 to March 31 (3 months), there were 500,000 shares outstanding.- From April 1 to September 30 (6 months), an additional 500,000 shares were issued for a total of 1,000,000 shares.- From October 1 to December 31 (3 months), an additional 1,200,000 shares were issued for a total of 2,200,000 shares.The weighted average is calculated as follows:- For the first 3 months: 500,000 shares * (3/12) = 125,000- For the next 6 months: 1,000,000 shares * (6/12) = 500,000- For the last 3 months: 2,200,000 shares * (3/12) = 550,000Adding these amounts together gives the weighted average number of shares for the year:125,000 + 500,000 + 550,000 = 1,175,000 shares.

Kale Incorporated Had 500,000 Shares of Common Stock Outstanding from January