question 1below is the stockholders equity

Question

Question 1
Below is the stockholders' equity section of Mission Company. Use this information to answer the following questions. Show all work.

Preferred stock (6% Cumulative, $50 par, 15,000 shares authorized, 10,000 shares issued and outstanding)	$500,000
Additional paid-in capital - preferred	100,000
Common stock ($20 par, 100,000 shares authorized,  ___shares issued and ____shares outstanding)	1,400,000
Additional paid-in capital- common	700,000
Retained earnings	500,000
Subtotal	$3,200,000
Less:  Treasury stock (2,000 common shares at cost)	(    50,000)
Total stockholders' equity	$3,150,000

1. How many shares of common stock have been issued?

2. How much was received when the common stock was issued?

3. How many shares of common stock are outstanding?

4. What is the current year's dividend stipulated for the preferred shareholders?

5. Assume dividends are in arrears for the two preceding years.

How much would have to be paid to preferred shareholders before any dividends are paid to common shareholders?

6. What is the cost per share of the treasury stock?

7. U.S. companies cannot recognize gains and losses on Treasury Stock transactions in their Income Statements.
True or False (Circle one.)

Question 2

Moonlight Corporation prepared the following Income Statement and Balance Sheet for the year ended December 31, 2016.

Moonlight Corporation
Income Statement
Year Ended Dec 31, 2016
Sales Revenue													17,500
Cost of Goods Sold													7,800
													---------------
			Gross Margin										9,700
Wage Expense											1,000
Selling and Administrative Expenses											4,500
Depreciation Expense											700
											--------------		6,200
													---------------
			Income from operations										3,500
Other Income/(Expenses)
Interest Expense											(900)
Gain on sale of land											120
											--------------		(780)
													---------------
			Pretax Income										2,720
Income Tax													1,000
													---------------
			Net Income										1,720
													=========
	Balance Sheet as of									12/31/16		12/31/15		Increase (Decrease)
	Assets
	Current Assets
		Cash								480		420		60
		Accounts Receivable								4,974		3,900		1,074
		Inventory								4,551		4,500		51
		Prepaid Assets								930		908		22
		Total Current Assets								10,935		9,728		1,207
	Land									0		5,000		(5,000)
	Property, Plant & Equipment (cost)									11,000		11,000		0
	Less:  Accumulated Depreciation									(5,900)		(5,200)		(700)
	Total Assets									16,035		20,528		(4,493)
	Liabilities and Owners' Equity
	Current Liabilities
		Accounts Payable								5,102		5,140		(38)
		Wages Payable								2,940		2,890		50
		Dividends Payable								110		100		10
		Total Current Liabilities								8,152		8,130		22
	Long term debt									1,913		7,588		(5,675)
	Stockholders' Equity
		Common Stock								4,010		4,010
		Retained Earnings								1,960		800		1,160
	Total Liabilities and Owners' Equity									16,035		20,528		(4,493)

The following additional data are available:

(a) Land that originally cost $ 5,000 was sold for cash $5120;

(b) Cash dividends declared in 2016 were $560. The company has paid $550 in cash with the remaining $10 to be paid next year.

(c) During the year, paid back long-term debt of $ 5,675 with cash.

Required:
Prepare the Statement of Cash Flows for the year ended December 31, 2016 using the indirect method.