Weighted-Average Shares Outstanding Calculation: Crane Company 2018

To calculate the weighted-average number of shares outstanding for 2018, we need to consider the number of shares outstanding for each period and multiply it by the portion of the year they were outstanding.

Shares outstanding on January 1: 370,000 Shares sold on March 1: 740,000 Shares issued as a stock dividend on May 1: (20% of (370,000 + 740,000)) = 222,000 Shares purchased and retired on August 1: 410,000 Shares sold on November 1: 590,000

Weighted-average shares outstanding can be calculated as follows:

Shares outstanding on January 1 * portion of the year = 370,000 * (12/12) = 370,000 Shares sold on March 1 * portion of the year = 740,000 * (10/12) = 616,667 Shares issued as a stock dividend on May 1 * portion of the year = 222,000 * (8/12) = 148,000 Shares purchased and retired on August 1 * portion of the year = -410,000 * (3/12) = -102,500 (negative sign because retired stock reduces the number of shares outstanding) Shares sold on November 1 * portion of the year = 590,000 * (2/12) = 98,333

Weighted-average shares outstanding = 370,000 + 616,667 + 148,000 - 102,500 + 98,333 = 1,130,500

Rounded to the nearest dollar, the weighted-average number of shares outstanding for 2018 is 1,130,500.