7. The stockholders equity section ofZenith Corporation at December 31st is as follows: paid I capitol preferred stock, cumulative Directions After reviewing the stockholders equity section, write a memo to the Board of Directors answering the following questions: (a) How many shares of common stock are outstanding? (b) Assuming there is a stated value, what is the stated value of the common stock? (c) What is the par value of the preferred stock? (d) If the annual dividend on preferred stock is $30,000, what is the dividend rate on preferred stock? (e) If dividends of $60,000 were in arrears on preferred stock, what would be the balance in Retained Earnings?

Paid in capitol preferred stock, cumulative, 10,000 shares authorized, 6,000 shares issued and outstanding 300,000

common stock, no. par, 750,000 shares authorized, 600,00 shares issued 120,000

total paid-in capital 1,500,000

retained earnings 1,858,000

total paid in capitol and retained earnings 3,358,000

less: treasury stock(10,000 common shares) 64,000

total stockholders equity 3,294,000