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Activity - Stockholders Equity Section of the Balance Sheet

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Assessment Activity - Stockholders' Equity Section of the Balance Sheet

Answer the following questions using the Lachlin Corporation Balance Sheet (partial) below:

1. How many shares of common stock are outstanding?

2. Assuming there is a 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?

Reference no: EM132450552

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