Adobe Systems, Inc. Stockholders' Equity Questions ADOBE SYSTEMS INCORPORATED, STOCKHOLDERS' EQUITY SECTION OF BALANCE SHEET (amounts in thousands, except per share amounts) Nov. 29, Y2 Nov. 30, Y1 Stockholders' equity: Preferred stock, $0.1 par value; 2,000 shares authorized; 1,200 shares issued and outstanding in Y2 and Y1 $120 $120 Common stock, $0.1 par value; Authorized 800,000 shares; Issued: 275,764 shares in Y2 and Y1 24,814 24.814 Additional paid-in capital - Common- 246,339 176,230 Retained earnings 1,418,891 1,174,829 Accumulated other comprehensive income (loss). (3,950) 3,918 Treasury stock, at cost (63,809 and 59,745 shares in Y2 and Y1, respectively).. Total stockholders' equity (1,112,449) $573,765 (948,363) $431,548 The stockholders' equity section of the balance sheets for Y2 and Y1 is shown above, for Adobe Systems Incorporated. Please answer the following, using the Y2 data (all the questions are independent of one-another): a. Assuming all of the preferred stock was sold at par and that none of the treasury stock has been sold, how much, on average, was received for one share of common stock? $0.9844 b. Assume all of the treasury stock is common stock. At Nov. 29, Y2, how many shares of common stock were outstanding? 211,995 c. Using the Y2 information, if 3,000 shares of treasury stock were sold at $25 per share, what would be the journal entry to record this sale? Date Nov 29, Y2 Account Cash Debit Credit 75,000 Treasury Stock 60,000 Additional Paid-in 15,000 Capital Treasury Stock Adobe Systems, Inc. Stockholders' Equity Questions d. If adobe declared and issued an 8% common stock dividend, with the market value of the common stock being $25 per share, what would be the effect of this stock dividend on (1) common stock, (2) additional paid-in capital, (3) retained earnings, and (4) total stockholders' equity? Use outstanding shares (at Nov. 29, Y2) to answer these questions. e. If Adobe, at Nov. 29, Y2, split its stock 4:1, what would be the following: (1) shares authorized, issued, and outstanding; (2) par value of the stock per share; (3) the change in the total value of common stock; (4) the change in total stockholders' equity?