How many shares of common stock are outstanding

Reference no: EM131741657

Assignment

Purpose of Assignment

The purpose of this assignment is to help you become familiar with examining the stockholders' equity section of the balance sheet.

Assignment Steps

Resources: Financial Accounting: Tools for Business Decision Making, Ch. 11.

Answer the following questions in 1,050 words using the Lachlin Corporation Balance Sheet located on p. 575 of Financial Accounting:

• How many shares of common stock are outstanding?
• Assuming there is a stated value, what is the stated value of the common stock?
• What is the par value of the preferred stock?
• If the annual dividend on preferred stock is $36,000, what is the dividend rate on preferred stock?
• 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)
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

Reference no: EM131741657

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