Stockholders Equity Section of the Balance Sheet

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Answer the following questions in 1,050 words using the Lachlin Corporation Balance Sheet

The stockholders' equity section of Lachlin Corporation's balance sheet at December 31 is presented here.

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

580,000 shares issued and outstanding $ 2,900,000

_________

Total paid-in-capital $ 3,500,000

Retained earnings $ 1,158,000

____________

Total paid in capital in retain earnings = $4,658,000

Less: Treasury Stock (6,000 common shares ) $ 32,000

____________

Total stockholders equity. $ 4,626,000

1) How many shares of common stock are outstanding?

2) Assuming there is a 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?