Bowen Corporation had 39,000 shares of common stock outstanding from January 1 to April 1 and 59,000 shares from April 1 to December 31.What is the weighted-average number of shares used for earnings per share calculations?

Question

Quizplus · Accepted Answer

The weighted-average number of shares is calculated by multiplying the number of shares by the fraction of the year they were outstanding. For Bowen Corporation: (39,000 shares * 3/12) + (59,000 shares * 9/12) = 9,750 + 44,250 = 54,000 shares.

Bowen Corporation Had 39,000 Shares of Common Stock Outstanding from January