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.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
H6.
Account
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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