Question

The 2016 annual report for Mega Mills disclosed that 1 billion shares of common stock have been authorized. At the end of 2015, 750 million shares had been issued and the number of shares in treasury stock was 103 million. During 2016, the only common share transactions were that 16 million common shares were reissued from treasury and 22 million common shares were purchased and held as treasury stock.

Required:
1. Determine the number of common shares (a) issued, (b) in treasury, and (c) outstanding at the end of 2016. (Enter your answers in millions.)

Answer 1

Answer:a. Total common stock issued is 750 millions

b. In treasury is 109 million

c. Outstanding 750 million.

Step-by-step explanation:

Issued shares referred to the total amount of authorised shares that has been issued to the public for subscription.

Treasury stock refers to parts of the issued stock that are held up for the ownership of the issuing company.

Outstanding stock refers to the total number of stock issued and fully paid for from the issued stock.