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Analyzing and Computing Issue Price, Treasury Stock Cost, and Shares Outstanding Following is the stockholders' equity section of the 2018 Merck & Co. Inc. balance sheet. Stockholders' Equity (5 millions, except par value) Common stock, $0.50 par value; 6,500,000 authorized shares; 3,577,105,722 issued shares Other paid-in capital Retained earnings Accumulated other comprehensive loss Stockholders' equity before deduction for treasury stock Less treasury stock, at cost 984,543,979 shares Total Merck & Co. inc. stockholders' equity a. Show the computation of 100 2018 $1,789 46,570 51,095 (6,654) $92,800 61,115 $31,685

Analyzing and Computing Issue Price, Treasury Stock Cost, and Shares Outstanding Following is the stockholders' equity section of the 2018 Merck & Co. Inc. balance sheet. Stockholders' Equity (5 millions, except par value) Common stock, $0.50 par value; 6,500,000 authorized shares; 3,577,105,722 issued shares Other paid-in capital Retained earnings Accumulated other comprehensive loss Stockholders' equity before deduction for treasury stock Less treasury stock, at cost 984,543,979 shares Total Merck & Co. inc. stockholders' equity a. Show the computation of 100 2018 $1,789 46,570 51,095 (6,654) $92,800 61,115 $31,685

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Analyzing and Computing Issue Price, Treasury Stock Cost, and Shares Outstanding Following is the stockholders' equity section of the 2018 Merck & Co. Inc. balance sheet. 2018 Stockholders' Equity (5 millions, except par value) Common stock, $0.50 par value; 6,500,000 authorized shares 3,577,105,722 issued shares Other paid-in capital Retained earnings Accumulated other comprehensive loss Stockholders' equity before deduction for treasury stock Less treasury stock, at cost 984,543,979 shares Total Merck & Co. Inc. stockholders' equity 3,577,105,722 $1,789 46,570 51,095 a. Show the computation of the $1,789 million in the common stock account. shares x $ 0.5 (6,654) $92,800 61,115 $31,685 per share rounded down to $ 1,788 b. At what average price were the Merck common shares issued? Note: Round your answers to two decimal places (for example, enter 67.49 for 67.48555). $9.18 x per share c. At what average cost was the Merck treasury stock purchased? Note: Round your answers to two decimal places (for example, enter 67.49 for 67.48555). $ 41.38 x per share d. How many common shares are outstanding as of December 31, 2018? 76.41 million on the balance sheet. x shares outstanding
Transcribed Image Text:Analyzing and Computing Issue Price, Treasury Stock Cost, and Shares Outstanding Following is the stockholders' equity section of the 2018 Merck & Co. Inc. balance sheet. 2018 Stockholders' Equity (5 millions, except par value) Common stock, $0.50 par value; 6,500,000 authorized shares 3,577,105,722 issued shares Other paid-in capital Retained earnings Accumulated other comprehensive loss Stockholders' equity before deduction for treasury stock Less treasury stock, at cost 984,543,979 shares Total Merck & Co. Inc. stockholders' equity 3,577,105,722 $1,789 46,570 51,095 a. Show the computation of the $1,789 million in the common stock account. shares x $ 0.5 (6,654) $92,800 61,115 $31,685 per share rounded down to $ 1,788 b. At what average price were the Merck common shares issued? Note: Round your answers to two decimal places (for example, enter 67.49 for 67.48555). $9.18 x per share c. At what average cost was the Merck treasury stock purchased? Note: Round your answers to two decimal places (for example, enter 67.49 for 67.48555). $ 41.38 x per share d. How many common shares are outstanding as of December 31, 2018? 76.41 million on the balance sheet. x shares outstanding
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