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15. At December 31, 2016, Central Corporation had 40,000 shares outstanding stock. The of $60 par value common snares were originally issued for $168 per

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15. At December 31, 2016, Central Corporation had 40,000 shares outstanding stock. The of $60 par value common snares were originally issued for $168 per share. On January 1, 2017, Central split its common stoc for 1 with a corresponding reduction in the stock's par value. The market price of the stock just before the split was $300 per share. After the split, the balance in the common stock account is: A) 2,400,000 B) $12,000,000 C) $ 7,200,000 D) $ 6,720,000 16, A company has 10,000 shares of S20 par, 3% preferred stock outstanding, and 25,000 shares of sa par common stock outstanding. The preferred stock is cumulative and no dividends have been paid for the past two years. it the company wishes to distribute $8 per share to the common stockholders, what is the total amount of dividends that must be paid in the current year? A) $218,000 B) $203,000 C) $206,000 D) $290,000 USE THE FOLLOWING INFORMATION FOR QUESTIONS 17-18 Henry Corporation reported the following transactions for 2016 1. Sold equipment for $28,000. The original cost was $60,000, the book value is $24,000 2. Issued 2,000 shares of $20 par value common stock for $48 per share 3. Paid $12,000 for an Insurance policy which goes into effect in January 2017 4. Recognized $8,000 in Interest expense on Dec 31, 2016-to be paid on April 30, 2017 6. Reacquired 300 shares of its own common stock at $80 per share 7. Received $8,000 in dividends on stock held as available for sale 8. Recorded depreciation expense for $20,000 9. Paid $4,000 of dividends to common stockholders 10. Purchased equipment costing $260,000, by making a cash down payment of $80,000 and signing a note for the remaining $180,000. 11. Acquired a building with a market value of $1,000,000 by issuing 20,000 shares of common stock 13. Cash received from sale of investment securities $24,000 14. Repaid a loan, which included $20,000 of the principal and $4,000 in interest 17. The net cash flow from investing activities is: A) $(28,000) B) $(84,000) C) $ (4,000) D) $(48,000) 18. The net cash flow from financing activities is A) $68,000 B) $48,000 C) $12,000 D) $72,000

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