Theta Products Company reported the following stockholders equity on its balance sheet:

Requirements
1. What caused Theta s preferred stock to decrease during 2011? Cite all possible causes.
2. What caused Thetas common stock to increase during 2011? Identify all possible causes.
3. How many shares of Thetas common stock were outstanding at December 31, 2011?
4. Thetas net income during 2011 was $1,380 million. How much were Thetas dividends during the year?
5. During 2011, Theta sold no treasury stock. What average price per share did Theta pay for the treasury stock the company purchased during theyear?

Transcribed Image Text:

Stockholders' Equity Dollars and shares in millions December 31, 2011 2010 Preferred stock- $0.50 par value; authorized 30 shares; Convertible Preferred Stock; issued and outstanding: respectivelyS 3 6 2011 and 2010--6 and 12 shares, respectively. Common stock $2 per share par value; authorized 1,400 shares; issued: 2011 and 2010-300 and 200 shares, respectively Additional paid-in capital Retained earnings Treasury stock, common-at cost 600 1,950 6,270 400 1,200 5,066 2011-52 shares; 2010-12s Total stockholders' equity Total liabilities and stockholders' equity (1,144) (228) 6,444 $48,299 $45,294 679