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Mitchell Company was authorized to issue 50,000 shares of common stock. The company issued 27,000 shares of stock and later purchased 5,000 shares of treasury stock. The number of outstanding shares of common stock is:

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Answer:

The answer is 22,000 shares.

Explanation:

The outstanding shares are the total number of share currently purchased i.e the total number of currently help by the shareholders.

Shares that was later bought back is called shares repurchase and this reduces the number of outstanding shares.

Therefore, the number of outstanding shares of common stock is

27,000 - 5,000

=22,000 shares.

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