2A2V RAY COMPANY HAS 530,000 COMMON SHARES OUTSTANDING AT YEAR-END....
81.
CSO: 2A2e
LOS: 2A2v
Ray Company has 530,000 common shares outstanding at year-end. At December 31, for
basic earnings per share purposes, Ray computed its weighted average number of shares
as 500,000. Prior to issuing its annual financial statements, but after year-end, Ray split
its stock 2 for 1. Ray's weighted average number of shares to be used for computing
annual basic earnings per share is
a.
500,000.
b.
530,000.
c.
1,000,000.
d.
1,060,000.