using the Lachlin Corporation Balance Sheet

Lachlan Corporation

Balance Sheet (partial)

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 authorized

580,000 shares issued 2,900,000

Total paid-in capital 3,500,000

Retained earnings 1,158,000

Total Paid in capital and retained earnings 4,658,000

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

Total stockholders equity $ 4,626,000

using excel sheet below answer thess questions How many shares of common stock are outstanding?

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

What is the par value of the preferred stock?

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

If dividends of $72,000 were in arrears on preferred stock, what would be the balance reported for retained earnings using excel sheet below

E11-4						Lachlin Corporation
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