Question

Buetters Company reports the following information at the fiscal year end of December​ 31, 2017:Common​ Stock, $0.10 par value per share​$94 millionPaidminus−in Capital in Excess of Parminus−Common600 millionRetained Earnings700 millionTotal​ Stockholders' Equity​$1394 millionHow many shares of common stock were​ issued?A.694 millionB.940 millionC.9.4 millionD.94 million

Answer 1

Answer: Option (B) is correct.

Explanation:

Given that,

Common​ Stock, $0.10 par value per share​ = $94 million

Paid−in Capital in Excess of Par−Common = 600 million

Retained Earnings = $700 million

Total​ Stockholders' Equity = ​$1394 million

$No.\ of\ Shares\ issues = \frac{Paid\ up\ value\ of\ total\ shares\ issued}{Par\ value\ per\ share}$

                                             = $\frac{94million}{0.10}$

                                             = 940 million