Find the Payout Ratio, Earnings per Share, and Return on common stockholders equity.
The stockholders' equity accounts of Indigo Corporation on January 1, 2022, were as follows. Preferred Stock (7%, $100 par noncumulative, 10,000 shares authorized) Common Stock ($4 stated value, 600,000 shares authorized) Paid-in Capital in Excess of Par Value-Preferred Stock Paid-in Capital in Excess of Stated Value-Common Stock Retained Earnings Treasury Stock (10,000 common shares) $600,000 2,000,000 30,000 960,000 1,376,000 80,000 During 2022, the corporation had the following transactions and events pertaining to its stockholders' equity. Feb. 1 Issued 10,000 shares of common stock for $60,000. Mar. 20 Purchased 2,000 additional shares of common treasury stock at $7 per share. Oct. 1 Declared a 7% cash dividend on preferred stock, payable November 1. Nov. 1 Paid the dividend declared on October 1. Dec. 1 Declared a $0.50 per share cash dividend to common stockholders of record on December 15, payable December 31, 2022. Dec. 31 Determined that net income for the year was $550,000. Paid the dividend declared on December 1. Journalize the transactions includis entries to close net incons and dividends to Recained Earnings Record entries in the order displayed in the amounts. Round answers to decimal places.es 5.275) Credit Date Feb 17 Account Titles and Explanation Cash Debit 0 D 000 Common Stock D 4 0000 Pels-in Capital In Excess of Stated Value-Common Stock D 2 0000 Mar 20 Treasury Stock 34000 Cash 54000 Oct. Cash Dividends 42000 D D -2000 Dividends Payable Dividends Payable PM Nov. 1 7 42000 | Cash 42000 Dec. 1 V Cash Dividends Cash Dividends 249000 Dividends Payable 249000 Dec. 31 Income Summary 580000 Retained Earnings record net income) (To record net income) Retained Earnings Dec.31 29.000 29.000 Cash Dividends (To close cash dividends) Didends Payable Dec.31 348000 Cash 349000 (To record payment of cash dividends peyebile) Enter the beginning balances in the accounts and post the journal entries to the stockholders' equity accounts. (Pos the balance date and zero for the amount.) Preferred Stock 1/1 Bal. 600000 12/31 Bal. 600000 Common Stock 1/1 Bal. 2000000 211 | 40000 12/31 Bal. 2040000 Paid-in Capital in Excess of Par Value-Preferred Stock 1/1 Bal. 30000 12/31 Bal. 30000 Paid-in Capital in Excess of Stated Value-Common Stock 960000 20000 12/31 Bal. 080000 Retained Earnings 12/31 291000 1/1 Bal 1376000 12/31 550000 1635000 Cash Dividends 42000 12/31 291000 12/1 249000 12/31 Bal. Treasury Stock 1/1 Bal. 30000 3/ 20 1 4000 12/31 Bal. 94000 Prepare the stockholders' equity section of the balance sheet at December 31, 2022. INDIGO CORPORATION Partial Balance Sheet December 31, 2022 Stockholders' Equity Pald-In Capital Capital Stock Preferred Stock 600000 Common Stock 2040000 Total Capital Stock 2540000 Additional Pald-In Capital Pald-In Capital In Excess of Par Value-Preferred Stock 30000 Pald-In Capital In Excess of Stated Value-Common Stock 980000 Total Additional Pald-In Capital 1010000 Total Pald-In Capital 3650000 Retained Earnings 1635000 Total Pald-In Capital and Retained Earnings 5285000 Less : Treasury Stock 94000 Total Stockholders' Equity 5191000 Your answer is incorrect. Calculate the payout ratio, earnings per share and return on common stockholders' equity. (Note: Use the common shares outstanding on January 1 and December 31 to determine the average shares outstanding) (Round answers to 2 decimal places, eg 17.50%.) Payout ratio Earnings per share Return on common stockholders' equity
