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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.) (Round your answers to 2 decimal places.) 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 dividend declared during the year on each share of common stock? (Hint: Net income increases retained earnings, whereas dividends decrease retained earnings.) (Round your answers to 2 decimal places.)

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.) (Round your answers to 2 decimal places.) 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 dividend declared during the year on each share of common stock? (Hint: Net income increases retained earnings, whereas dividends decrease retained earnings.) (Round your answers to 2 decimal places.)

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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H6.

Account 

The year-end balance sheet of Ft. Smith Products includes the following stockholders' equity section (with certain details omitted). Stockholders' equity: 7 1/2 % cumulative preferred stock, $100 par value, 100,000 shares authorized Common stock, $2 par value, 900,000 shares authorized Additional paid-in capital: common stock Retained earnings Required: 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? (Round intermediate calculations to 2 decimal places.) c. How many shares of common stock are outstanding? d. What was the average issuance price per share of common stock? (Round your answers to 2 decimal places.) e. What is the amount of legal capital? a. b. Total stockholders' equity 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.) (Round your answers to 2 decimal places.) 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 dividend declared during the year on each share of common stock? (Hint: Net income increases retained earnings, whereas dividends decrease retained earnings.) (Round your answers to 2 decimal places.) C. d. e. f. g. |h. Number of issued shares of preferred stock Annual preferred stock dividend Number of outstanding shares of common stock Average issuance price of common stock Legal capital Paid-in capital Book value per share of common stock Common stock dividend per share Answer is not complete. $ $ $ 23,000 shares 172,500✔ 450.000 shares 18.22✓ per share 10.500.000 X $ 2,300,000 900,000 7,300,000 2,595,000 $13,095,000 450,000.00 per share per share
Transcribed Image Text:The year-end balance sheet of Ft. Smith Products includes the following stockholders' equity section (with certain details omitted). Stockholders' equity: 7 1/2 % cumulative preferred stock, $100 par value, 100,000 shares authorized Common stock, $2 par value, 900,000 shares authorized Additional paid-in capital: common stock Retained earnings Required: 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? (Round intermediate calculations to 2 decimal places.) c. How many shares of common stock are outstanding? d. What was the average issuance price per share of common stock? (Round your answers to 2 decimal places.) e. What is the amount of legal capital? a. b. Total stockholders' equity 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.) (Round your answers to 2 decimal places.) 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 dividend declared during the year on each share of common stock? (Hint: Net income increases retained earnings, whereas dividends decrease retained earnings.) (Round your answers to 2 decimal places.) C. d. e. f. g. |h. Number of issued shares of preferred stock Annual preferred stock dividend Number of outstanding shares of common stock Average issuance price of common stock Legal capital Paid-in capital Book value per share of common stock Common stock dividend per share Answer is not complete. $ $ $ 23,000 shares 172,500✔ 450.000 shares 18.22✓ per share 10.500.000 X $ 2,300,000 900,000 7,300,000 2,595,000 $13,095,000 450,000.00 per share per share
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