The following is an excerpt from the 2016 statement of cash flows of Churchill Company, (in thousands) A footnote to the Churchill Company financial statements included the following: (a) Mandatory Convertible Preferred Stock On March 14, 2016, Churchill Company completed an offering of 1,045,000 shares of its 5.75% mandatory convertible preferred stock (the "Preferred Stock") at a public offering price of $485.40 per share, resulting in net proceeds of $499,625 million. At any time prior to March 15, 2019, holders of the Preferred Stock may elect to convert each share of Preferred Stock into 0.7890 shares of Common Stock, subject to anti-dilution adjustments. Required: a. Use a financial statements effects template to record the convertible preferred stock issued during 2016. The company reduced additional paid-in capital for the issuance costs paid to the underwriter. b. Use the financial statements effects template to record the treasury stock acquired. c. Use the financial statements effects template to record the dividend paid to preferred stockholders. d. Assume that on January 1, 2017, all preferred shares are converted to $1.50 par common stock. Explain how Churchill Company's balance sheet will be affected by this conversion. How would total equity change? The following is an excerpt from the 2016 statement of cash flows of Churchill Company, (in thousands) A footnote to the Churchill Company financial statements included the following: (a) Mandatory Convertible Preferred Stock On March 14, 2016, Churchill Company completed an offering of 1,045,000 shares of its 5.75% mandatory convertible preferred stock (the "Preferred Stock") at a public offering price of $485.40 per share, resulting in net proceeds of $499,625 million. At any time prior to March 15, 2019, holders of the Preferred Stock may elect to convert each share of Preferred Stock into 0.7890 shares of Common Stock, subject to anti-dilution adjustments. Required: a. Use a financial statements effects template to record the convertible preferred stock issued during 2016. The company reduced additional paid-in capital for the issuance costs paid to the underwriter. b. Use the financial statements effects template to record the treasury stock acquired. c. Use the financial statements effects template to record the dividend paid to preferred stockholders. d. Assume that on January 1, 2017, all preferred shares are converted to $1.50 par common stock. Explain how Churchill Company's balance sheet will be affected by this conversion. How would total equity change