Bacon Inc. has the following stockholders’ equity section in its May 31, 2019, comparative balance sheets: May 31, 2019 April 30, 2019 Paid-in capital: Preferred stock, $120 par value, 9%, cumulative, 200,000 shares authorized, 140,000 shares issued and outstanding $ 16,800,000 $ 16,800,000 Common stock, $5 par value, 1,000,000 shares authorized, 600,000 and 540,000 shares issued, respectively ? 2,700,000 Additional paid-in capital 26,100,000 23,220,000 Retained earnings 36,200,000 34,640,000 Less: Treasury common stock, at cost; 72,000 shares and 68,000 shares, respectively (4,412,000 ) (4,148,000 ) Total stockholders' equity $ ? $ 73,212,000 g. Assume that instead of the stock dividend described in f, the board of directors authorized a 2-for-1 stock split on June 1 when the market price of the common stock was $70 per share. 1. What will be the par value, and how many shares of common stock will be authorized after the split? (Round "Par value" answer to 2 decimal places.) 2. What will be the market price per share of common stock after the split? 3. How many shares of common stock will be in the treasury after the split?
Bacon Inc. has the following stockholders’ equity section in its May 31, 2019, comparative balance sheets: May 31, 2019 April 30, 2019 Paid-in capital: Preferred stock, $120 par value, 9%, cumulative, 200,000 shares authorized, 140,000 shares issued and outstanding $ 16,800,000 $ 16,800,000 Common stock, $5 par value, 1,000,000 shares authorized, 600,000 and 540,000 shares issued, respectively ? 2,700,000 Additional paid-in capital 26,100,000 23,220,000 Retained earnings 36,200,000 34,640,000 Less: Treasury common stock, at cost; 72,000 shares and 68,000 shares, respectively (4,412,000 ) (4,148,000 ) Total stockholders' equity $ ? $ 73,212,000 g. Assume that instead of the stock dividend described in f, the board of directors authorized a 2-for-1 stock split on June 1 when the market price of the common stock was $70 per share. 1. What will be the par value, and how many shares of common stock will be authorized after the split? (Round "Par value" answer to 2 decimal places.) 2. What will be the market price per share of common stock after the split? 3. How many shares of common stock will be in the treasury after the split?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Bacon Inc. has the following
May 31, 2019 | April 30, 2019 | |||||
Paid-in capital: | ||||||
$ | 16,800,000 | $ | 16,800,000 | |||
Common stock, $5 par value, 1,000,000 shares authorized, 600,000 and 540,000 shares issued, respectively | ? | 2,700,000 | ||||
Additional paid-in capital | 26,100,000 | 23,220,000 | ||||
36,200,000 | 34,640,000 | |||||
Less: |
(4,412,000 | ) | (4,148,000 | ) | ||
Total stockholders' equity | $ | ? | $ | 73,212,000 | ||
g. Assume that instead of the stock dividend described in f, the board of directors authorized a 2-for-1 stock split on June 1 when the market price of the common stock was $70 per share.
1. What will be the par value, and how many shares of common stock will be authorized after the split? (Round "Par value" answer to 2 decimal places.)
2. What will be the market price per share of common stock after the split?
3. How many shares of common stock will be in the treasury after the split?
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