Optical Products Company reported the following stockholders’ equity on its balance sheet:

Requirements

1. What caused Optical’s preferred stock to decrease during 2019? Cite all possible causes.

2. What caused the company’s common stock to increase during 2019? Identify all possible causes.

3. How many shares of Optical’s common stock were outstanding at December 31, 2019?

4. Optical’s net income during 2019 was $1,470 million. How much were the company’s dividends during the year?

5. During 2019, Optical sold no treasury stock. What average price per share did the company pay for the treasury stock that it purchased during the year?

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A1 December 31, Stockholders' Equity 1 (Dollars and shares in millions except for par value) 2 Convertible preferred stock–$2.50 par value; authorized 50 shares; 2019 2018 issued and outstanding: 3 2019 and 2018–6 and 12 shares, respectively 5 Common stock–$3.00 per share par value; authorized 15 30 1,300 shares; issued: 2019 and 2018––300 6. and 200 shares, respectively 900 600 855 5,066 7 8 Additional paid-in capital 9 Retained earnings 10 Treasury stock, common–at cost 1,500 6,200 2019–26 shares; 2018–6 shares (546) 8,069 $ 48,594 (102) 6,449 $ 43,449 11 12 Total stockholders' equity 13 Total liabilities and stockholders' equity 14