Analyzing stockholders’ equity (Learning Objectives 2 & 3) 5–10 min.

At December 31, 2014, Sugarland Company reported the following on its comparative balance sheet, which included 2013 amounts for comparison (adapted, with all amounts in millions except par value per share):

Common Stock, $2.25 par value, 550,000 shares authorized, 400,000 shares issued and outstanding in 2014: 399,000 shares in 2013 Paid-in Capital in Excess of Par Retained Earnings

$ 897,750 362,000 2,175,000

$ 900,000 395,500 2,400,000 December 31 2014 2013 1. How much did Sugarland Company’s total paid-in capital increase during 2014?

What caused total paid-in capital to increase? How can you tell?

2. Did Sugarland Company have a profit or a loss for 2014? How can you tell?

AppendixLO1