Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

i just need H Problem 11.5A (Algo) Arialysis of an Equity Section of a Balance Sheet (LO11-4, LO11-5) The yeor-end balance sheet of Ft. Smith

i just need H
image text in transcribed
image text in transcribed
Problem 11.5A (Algo) Arialysis of an Equity Section of a Balance Sheet (LO11-4, LO11-5) The yeor-end balance sheet of Ft. Smith Products includes the following siockholders' equity section (with certain detalis omitted) Required: From this information, compute answers to the following questions a. How many shares of preferred stock have been issued? b. What is the totol amount of the annual dividends poid to preferred stockholders? (Round intermediate calculations to 2 decimal places.) c. How many shares of common stock are outstanding? d. What was the average issuance price per share of common stock? (Round your answers to 2 decimal ploces.) e. What is the amount of legal capital? f. What is the total amount of paidin capital? 9. What is the book value per share of common stock? (There are no dividends in arrears) (Round your answers to 2 decimal places.) h. Assume that retained earnings at the beginning of the year amounted to $717,500 and that net income for the year was $3,970,000 What was the dividend declared during the year on each share of common stock? (Hint Net income increases retained earnings. whereas dividends decrease retaned eamings) (Round your answers to 2 decimal places.) ( Answer is not complete. \begin{tabular}{|l|l|r|r|} \hline & & \\ \hline a. & Number of issued shares of preferred stock & 25,000 & shares \\ \hline b. & Annual preferred stock dividend & & 187,500 \\ \hline c. & Number of outstanding shares of common stock & \\ \hline d. & Average issuance price of common stock & $50,000 & shares \\ \hline e. & Legal capital & $1.78 & per share \\ \hline f. & Paid-in capital & $ & 3,400,000 \\ \hline g. & Book value per share of common stock & $300,000 & \\ \hline h. & Common stock dividend per share & 27.54 & per share \\ \hline \end{tabular}

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Training And Development Audit

Authors: Rosemary Harrison

2nd Edition

0955970725, 978-0955970726

More Books

Students also viewed these Accounting questions