Question 2

The stockholders equity section of Swifty Corporations balance sheet at December 31 is presented here.

SWIFTY CORPORATION Balance Sheet (partial)
Stockholders equity
Paid-in capital
Preferred stock, cumulative, 12,000 shares authorized, 7,200 shares issued and outstanding		$ 756,000
Common stock, no par, 729,310 shares authorized, 564,000 shares issued		1,692,000
Total paid-in capital		2,448,000
Retained earnings		1,187,000
Total paid-in capital and retained earnings		3,635,000
Less: Treasury stock (7,500 common shares)		40,000
Total stockholders equity		$3,595,000

From a review of the stockholders equity section, answer the following questions. (a) How many shares of common stock are outstanding?

Common stock outstanding

shares

(b) Assuming there is a stated value, what is the stated value of the common stock?

The stated value of the common stock

$ per share

(c) What is the par value of the preferred stock?

The par value of the preferred stock

$ per share

(d) If the annual dividend on preferred stock is $45,360, what is the dividend rate on preferred stock?

The dividend rate

%

(e) If dividends of $77,600 were in arrears on preferred stock, what would be the balance reported for retained earnings?

The Retained Earnings balance

$