Question: Lachlin Corporation balance sheet Financial Accounting Tools for Business Decision Making.
1. How many shares of common stock are outstanding?
2. Assuming there is stated value, what is the stated value of the common stock?
3. What is the par value of the preferred stock ?
4. If the annual dividend on preferred stock is $36,000, what is the dividend rate on preferred stock?
5. If dividends of $72,000 were in arrears on preferred stock, what would be the balance reported for retained earnings?
LACHLIN CORPORATION
Balance Sheet (partial)
December 31
Stockholders' equity
Paid in capital
Preferred stock, cumulative, 10,000
shares authorized, 6,000
shares issued and outstanding $600,000
Common Stock, no par, 750,000
shares authorized, 580,000
shares issued. 2,900,000
Total paid in capital. 3,500,000
Retained earnings. 1,158,000
Total paid in capital and retained earnings. 4,658,000
Less: Treasury stock (6,000 common shares) 32,000
Total Stockholders equity. 4,626,000