The stockholders' equity accounts of Cyrus Corporation on January 1, 2017, were as follows.

Preferred Stock (7%, $100 par noncumulative, 5,000 shares authorized)	$300,000
Common Stock ($4 stated value, 300,000 shares authorized)	1,000,000
Paid-in Capital in Excess of Par ValuePreferred Stock	15,000
Paid-in Capital in Excess of Stated ValueCommon Stock	480,000
Retained Earnings	688,000
Treasury Stock (5,000 common shares)	40,000

During 2017, the corporation had the following transactions and events pertaining to its stockholders' equity.

Feb.1

Issued 5,000 shares of common stock for $30,000.

Mar.20

Purchased 1,000 additional shares of common treasury stock at $7 per share.

Oct.1

Declared a 7% cash dividend on preferred stock, payable November 1.

Nov.1

Paid the dividend declared on October 1.

Dec.1

Declared a $0.50 per share cash dividend to common stockholders of record on December 15, payable December 31, 2017.

31

Determined that net income for the year was $280,000. Paid the dividend declared on December 1.

(b)

Enter the beginning balances in the accounts and post the journal entries to the stockholders' equity accounts. (Use T-accounts.)

(c)

Prepare the stockholders' equity section of the balance sheet at December 31, 2017.

Tot. paid-in capital

$1,825,000

(d)

Calculate the payout ratio, earnings per share, and return on common stockholders' equity. (Note: Use the common shares outstanding on January 1 and December 31 to determine the average shares outstanding.)