Assume the following information for Petra Sales Company: • Common stock, $1.00 par, 200,000 issued, 180,000 outstanding
• Paid-in capital in excess of Par-Common: $1,600,000
• Retained earnings: $2,440,000
• Treasury stock: 20,000 shares purchased at $12 per share
If Petra Sales purchases an additional 5,000 shares of treasury stock at $14 per share, what number of shares will be shown as issued and outstanding?

Question

Quizplus · Accepted Answer

The number of issued shares remains at 200,000. The outstanding shares decrease to 175,000 after purchasing an additional 5,000 shares of treasury stock (180,000 - 5,000 = 175,000).

Assume the Following Information for Petra Sales Company: • Common