Question

Using the information provided, calculate the weighted average number of common shares in
circulation for the year 2020.
 The common shares of a company were 120,000 on January 1, 2020.
 On February 1, the company issued 60,000 additional shares
 Another 48,000 were issued on March 1.
 On April 1, the company issued 24,000 new shares.
 On May 1, the company bought 36,000 portfolio shares
 Purchased another 36,000 portfolio shares on June 1.
 On July 1, he declared a 20% dividend in shares.
 On August 1, it issued 75,000 new shares.
 On August 15, it carried out a 1.50: 1 share split.
 On September 1, it issued another 18,000 shares
 On December 1, it acquired 6,000 portfolio shares

Provide the process (if you could use excel, better for me)

Answer 1

			A	B	C	D	(A*B*C*D)/365
Dates	Transaction	Shares	Shares Outstanding	Restated Dividend	Restated Share Split	No of days	Weighted Shares
1-Jan-20	Beg Balance	120,000	120,000	1.2	1.5	31	18,345
1-Feb-20	Stock Issued	60,000	180,000	1.2	1.5	29	25,742
1-Mar-20	Stock Issued	48,000	228,000	1.2	1.5	31	34,856
1-Apr-20	Stock Issued	24,000	252,000	1.2	1.5	30	37,282
1-May-20	Acquired	(36,000)	216,000	1.2	1.5	31	33,021
1-Jun-20	Acquired	(36,000)	180,000	1.2	1.5	61	54,148
1-Jun-20	dividend @ 20%	36,000	216,000	1	1.5	61	54,148
1-Aug-20	Stock Issued	75,000	291,000	1	1.5	14	16,742
15-Aug-20	Stock Split (1.5:1)	X1.5 times	436,500.0	1	1	17	20,330
1-Sep-20	Stock Issued	18,000	454,500.0	1	1	91	113,314
1-Dec-20	Acquired	(6,000)	448,500.0	1	1	30	36,863

Note

1. When Stock dividend or splits occur, we need to restate the shares outstanding before stock dividend or split

2. 20% of Stock dividend 180000*20%=36000

3.Stock split 291000*1.5=436500

Workings

		A	B	C	D	(A*B*C*D)/365
Transaction	Shares	Shares Outstanding	Restated Dividend	Restated Share Split	No of days	Weighted Shares
Beg Balance	120000	=D3	1.2	1.5	=B4-B3	=(E3*F3*G3) *H3/365
Stock Issued	60000	=E3+D4	1.2	1.5	=B5-B4	=(E4*F4*G4) *H4/365
Stock Issued	48000	=E4+D5	1.2	1.5	=B6-B5	=(E5*F5*G5) *H5/365
Stock Issued	24000	=E5+D6	1.2	1.5	=B7-B6	=(E6*F6*G6) *H6/365
Acquired	-36000	=E6+D7	1.2	1.5	=B8-B7	=(E7*F7*G7) *H7/365
Acquired	-36000	=E7+D8	1.2	1.5	61	=(E8*F8*G8) *H8/365
dividend @ 20%	=E8*0.2	=E8+D9	1	1.5	=B10-B9	=(E9*F9*G9) *H9/365
Stock Issued	75000	=E9+D10	1	1.5	=B11-B10	=(E10*F10*G10) *H10/365
Stock Split (1.5:1)	X1.5 times	=E10*1.5	1	1	=B12-B11	=(E11*F11*G11) *H11/365
Stock Issued	18000	=E11+D12	1	1	=B13-B12	=(E12*F12*G12) *H12/365
Acquired	-6000	=E12+D13	1	1	=B14-B13	=(E13*F13*G13) *H13/365
						=(E14*F14*G14) *H14/365