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 shres issued and outstanding $600,000

Common stock, no par, 750,000 shares authorized,

580,000 shares issued 2,900,000

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Total paid-in capital 3,500,000

Retained earnings 1,158,000

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Total paid-in capital and retained earnings 4,658,000

Less: Treasury stock (6,000 common shares) 32,000

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Total stockholders' equity $4,626,000

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Instructions

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

(a) How many shares of common stock are outstanding?

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

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

(d) If the annual dividend on preferred stock is $36,000, what is the dividend rate on preferred stock?

(e) If dividends of $72,000 were in arrears on preferred stock, what would be the balance reported for retained earnings?

Use Excel spreadsheet