Reference no: EM131835662

Question: 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:

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?

Use the Week 4 Excel® spreadsheet and submit with your answers.