Lachlin Corporation balance sheet Financial Accounting Tools for Business Decision Making Chapter 11

1. how many shares of common stock are outstanding? 2. Assuming there is stated value, what is the stated value of the common stock?

3. What is the par value of the preferred stock ? 4. If the annual dividend on preferred stock is $36,000, what is the dividend rate on preferred stock? 5. If dividends of $72,000 were in arrears on preferred stock, what would be the balance reported for retained earnings?

LACHLIN CORPORATION Balance Sheet (partial) December 31

Stockholders' equity Paid in capital Preferred stock, cumulative, 10,000 shares authorized, 6,000 shares issued and outstanding. $600,000 Common Stock, no par, 750,000 shares authorized, 580,000 shares issued. 2,900,000 Total paid in capital. 3,500,000

Retained earnings. 1,158,000 Total paid in capital and retained earnings. 4,658,000 Less: Treasury stock (6,000 common shares) 32,000 Total Stockholders equity. 4,626,000