1. In late 2018, NCS Corporation was formed. The corporate charter authorized the issuance of 40 million shares of common stock carrying a $1 par value, and 10 million shares of $50 par value, 10% cumulative, nonparticipating preferred stock. On Dec 23, 2018, 6 million shares of the common stock were issued in exchange for cash at an average price of $35 per share. Also on Dec 23, 3 million shares of preferred stock were issued at $55 per share.

During 2019, NCS Corporation participated in the following transactions:

• On January 30, NCS reacquired 500,000 shares for the treasury at a price of $34 per share.
• On May 31, 100,000 treasury shares were sold at $36 per share.
• On July 20, NCS reacquired and retired 1 million common shares at a price of $39 per share.
• On August 31, 100,000 treasury shares were sold at $36 per share.
• On November 15, the board of directors of NCS declared cash dividends of $1 million. Payment was scheduled for December 15, to common and preferred shareholders of record on November 15.
• On December 18, NCS declared a 5% stock dividend, payable on December 22, to common shareholders of record on December 20. At the date of declaration, the common stock was selling in the open market at $37 per share.
• On December 25, 200,000 treasury shares were sold at $35 per share.
• On December 30, NCS replaced its $1 par value common stock (all the authorized shares) with a new common stock having a $.50 par value. This represents a 2-for-1 stock split. That is, the shareholders received two shares of the $.50 par stock in exchange for each share of the $0.5 par stock they own. The $1 par stocks were collected and destroyed.
• Net income for 2019 was $15,000,000.

**Note: Dividends are not paid on shares held in the treasury. Dividends are paid only on the shares outstanding.

**Enter your answers in Thousands.

1. Keep track of the number of common shares after each event.

# of outstanding shares Par value (in thousand) ! # of treasury #of issued | (in $) shares shares $1 $1 $1 $1 $1 $1 $1 $1 $1 $0.05 $0.05 Date Jan 1, 2019 0 6,000 30-MarRepurchased common shares 31-May Sold treasury stocks 20-JulRepurchased and retired common shares 31-Aug Sold treasury stocks 15-Nov Cash dividend declared 18-DecCommon stock dividend declared 20-Dec Common stock dividend distributed 25-Dec Sold treasury stocks 30-DecStock split 10470 10470 200 Dec 31, 2019