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Show the computation of multigrain total shareholders equity

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Reference no: EM132823911

Question - Multigrain Health Foods Inc. is authorized to issue 5,000,000 common shares. In its initial public offering during 2010, Multigrain issued 500,000 common shares for $7.00 per share. Over the next year, Multigrain's share price increased and the company issued 400,000 more shares at an average price of $8.50.

During the next seven years, from 2010 to 2016, Multigrain earned a net income of $920,000. They declared and paid cash dividends of $140,000. A 10% stock dividend was distributed to the shareholders in 2016 on the shares outstanding. The market price was $8.00 per share when the stock dividend was distributed. On December 31, 2016, the company has total assets of $14,500,000 and total liabilities of $6,820,000.

1. Show the computation of Multigrain's total shareholders' equity at December 31, 2016.

2. Present a detailed computation of each element of shareholder's equity.

Reference no: EM132823911

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