Analysis Caso 18-2 Statement of shar.holders .quity LO18-1, LO18-3 LO18-6 , LO18-7 The shareholders' equity portion of the balance sheet of Sessel's Department Stores, Inc., a large regional specialty retailer, is as follows: SESSEL'S DEPARTMENT STORES, INC. Comparative Balance Sheets Shareholders' Equity Section $ in thousands, except per share amounts Shareholders' Equity Preferred stock-$1 par value; 20,000 total shares authorized, Series A-600 shares Dec. 31, 2019 Dec. 31, 2018 authorized, issued, and outstanding, 57,700 $ $50 per share liquidation preference Series B-33 shares authorized, no shares outstanding Common stock-$0.10 par, 200,000 shares authorized, 19,940 and 18,580 shares issued and outstanding at Dec. 31, 2019, and Dec. 31, 2018, respectively Additional paid-in capital Retained income Total shareholders' equity 1,858 201,430 44,798 5361,352 $248,086 1,994 227,992 73,666 Disclosures elsewhere in Sessel's annual report revealed the following changes in shareholders equity accounts for 2019 2018, 2017 2019: 1. The only changes in retained earnings during 2019 were preferred dividends on preferred stock of $3,383,000 and net income. 2. The preferred stock is convertible. During the year, 6,592 shares were issued. All shares were converted into 320,000 shares of common stock. No gain or loss was recorded on the conversion. 3. Common shares were issued in a public offering and upon the exercise of stock options. On the statement of shareholders equity, Sessel's reports these two items on a single line entitled: "Issuance of shares." 2018