Exercise 11-5B Chanacteristics of capital stock The stockholders' equity section of Creighton Company's balance sheet is shown as follows. Required a. Assuming the preferred stock was originally issued for cash, determine the amount of cash that was collected when the stock was issued. b. Based on the class B common stock alone, determine the amount of the company's legal capital. c. Based on the class B common stock alone, determine the minimum amount of assets that must be retained in the company as protection for creditors. d. Determine the number of shares of class B common stock that are available to sell as of December 31 , Year 3. e. Assuming Creighton purchases treasury stock consisting of 50 shares of its no par common stock on January 1, Year 4, determine the amount of the no-par common stock that would be outstanding immediately after the purchase. f. Based on the stockholders' equity section shown earlier, can you determine the market value of the preferred stock? If yes, what is the market value of one share of this stock? EXERCISE 11-5B a. The amount of cash collected is =$ b. The legal capital of the outstanding class B common stock is $. c. The minimum amount of assets that must be retained in the company as protection for creditors is the amount of capital, which is also the amount of the value of the stock. d. The number of shares of the class B common stock available to sell is shares. e. The number of shares of outstanding stock is decreased by the purchase of stock but does not affect the number of shares that have been issued. Since there were shares of the par value common stock outstanding before the purchase of the treasury stock, there would be only shares of the stock outstanding after the purchase. However, the number of shares issued would remain at f. The market value of stock cannot be determined by analyzing the stockholders' equity section of the balance sheet. The balance sheet contains information. More specifically, it shows the issue price of the stock on the date the stock was . In contrast, market value is based on investor expectations regarding the company's ability to generate earnings in the