Answer:
320,000
Explanation:
Given that,
Common stock outstanding on January 1, 2017 = 300,000 shares
On May 1, shares issued = 30,000
Weighted average shares :
= [300,000 × (12 ÷ 12)] + [30,000 × (8 ÷ 12) ]
= 300,000 + 20,000
= 320,000
Therefore, the weighted-average number of shares outstanding is 320,000 if the 30,000 shares were issued for cash.
Note:
As they issued stock dividend additional shares assumed to be outstanding from the very beginning of the year.
