The year end balance sheet of Ft Smith Products includes the following stockholders ' equity section (with certain details omitted) Stockholders ' equity 7 cumulative preferred stock, $100 par value, 100,000 shares authorized $ 2,400,000 Common stock, $2 par value, 900,000 shares authorized 900,000...

a Par value of all preferred stock outstanding 2400000 Par value per share of preferred stock 100 Nu ...

The year-end balance sheet of Ft. Smith Products includes the following stockholders' equity section (with certain details

Question:

The year-end of Ft. Smith Products includes the following stockholders' equity section (with certain details omitted):
Stockholders' equity:
7½% cumulative preferred stock, $100 par value,
100,000 shares authorized . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2,400,000
Common stock, $2 par value, 900,000 shares authorized . . . . . . . . . . . . . . 900,000
Additional paid-in capital: . . . . . . . . . . . . . . . . . . . . . . . . . . 8,325,000
Retained earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,595,000
Total stockholders' equity. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $14,220,000
Instructions
From this information, compute answers to the following questions:
a. How many shares of preferred stock have been issued?
b. What is the total amount of the annual dividends paid to preferred stockholders?
c. How many shares of are outstanding?
d. What was the average issuance price per share of common stock?
e. What is the amount of legal capital?
f. What is the total amount of paid-in capital?
g. What is the book value per share of common stock? (There are no dividends in arrears.)
h. Assume that retained earnings at the beginning of the year amounted to $717,500 and that net income for the year was $3,970,000. What was the declared during the year on each share of common stock?
Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial... Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...