Reference no: EM132551401

In 2014, Randy Martin began operating NEK Inc., a chain of men's shirt retailers. The corporation was authorized to issue unlimited shares of no-par value common stock and unlimited shares of $9 cumulative, no par value, preferred stock. 10 000 shares of the preferred stock were issued for a total of $900 000 and 45 000 shares of common stock were issued at $40 per share. During the first three years of its existence, NEK Inc. earned a total of $776 000 and paid yearly dividends of $3 per share on the common stock, in addition to the regular dividends on the preferred stock. During 2017, however, the corporation incurred a loss of $71 000 and paid no dividends.

Calculate the following.

Question 1: the total value of all the shares issued.

Question 2: the total dividends paid on common shares up to the end of 2017.

Question 3: the total dividends paid on preferred shares up to the end of 2017.

Question 4: the amount of the Retained Earnings at the end of 2017.

Question 5: the total shareholders equity at the end of 2017.