Toasty Corporation is a publicly owned company. The following information is taken from a recentbalance sheet. Dollar amounts (except for per-share amounts) are stated in thousands.Stockholders’ equity:Convertible $10 preferred stock, no parvalue, 1,000,000 shares authorized, 250,000 sharesissued and outstanding, $200 per share liquidationpreference . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 50,000Common stock, $3 par value, 40,000,000 sharesauthorized . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,600Additional paid-in capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76,800Retained earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50,600Total stockholders’ equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $187,000InstructionsFrom this information, compute answers to the following questions:a. How many shares of common stock have been issued?b. What is the total amount of the annual dividends paid to preferred stockholders?c. What is the total amount of paid-in capital?
Toasty Corporation is a publicly owned company. The following information is taken from a recent
Convertible $10
value, 1,000,000 shares authorized, 250,000 shares
issued and outstanding, $200 per share liquidation
preference . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 50,000
Common stock, $3 par value, 40,000,000 shares
authorized . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,600
Additional paid-in capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76,800
Total stockholders’ equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $187,000
Instructions
From this information, compute answers to the following questions:
a. How many shares of common stock have been issued?
b. What is the total amount of the annual dividends paid to preferred stockholders?
c. What is the total amount of paid-in capital?
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