The January 1 balance is adjusted retroactively for the reverse stock split and 320,000 / 2 = 160,000 shares are treated as outstanding from January 1. Issuance of stock is included from the date of issuance. The weighted average shares are computed by multiplying the share amounts by the number of months the shares were outstanding, then adding these amounts and dividing the sum by 12.
| January 1: |
initial shares |
160,000 × 12 = |
1,920,000 |
| July 1: |
Smith acquisition |
60,000 × 6 = |
360,000 |
| October 1: |
cash issuance |
30,000 × 3 = |
90,000 |
| Total: |
|
|
2,370,000 |
Oregon’s weighted average shares = 2,370,000 / 12 = 197,500.
|
