The balance sheet of Lamont Bros. follows: a. What portions of Lamonts assets were provided by debt,

The balance sheet of Lamont Bros. follows:

a. What portions of Lamont’s assets were provided by debt, contributed capital, and earned capital? Reduce contributed capital by the cost of the treasury stock.
b. Compute the company’s debt/equity ratio. Compute the debt/equity ratio if the preferred stock issuance was classified as a long-term debt.
c. In most states, to what dollar amount of dividends would the company belimited?

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ASSETS Current assets Noncurent assets LIABILITIES AND SHAREHOLDERS' EQUITY $85,000 Current liabilities $52,000 35,000 50,000 80,000 315,000 Long-term note payable Preferred stock Common stock Additional paid-in capital: 50,000 100,000 113,000 (80,000) Preferred stock Common stock Retained earnings Less: Treasury stock Total assets $400,000 Total liabilities and shareholders' equity $400,000