Reference no: EM132490684
The shareholders' equity section of the balance sheet of The Claremont Company appeared as follows at the end of the first year of operations:
Common stock, $0.08 par value $480,000
Additional paid-in-capital 71,520,000
Retained earnings 25,600,000
Treasury stock(6,000,000)
Shareholders' equity$91,600,000
During the second year of operations, the following transactions occurred:
- Generated net income of $4.8 million.
- Paid a cash dividend of $1.2 million.
- Purchased 100,000 shares of common stock at $7.6 per share.
- Executed a 1-for-2 reverse stock split.
Question 1: Prepare the shareholders' equity section of the balance sheet of Claremont Company at the end of the second year of operations