Chapter 11, Problem 11.4E

Reporting Stockholders’ Equity

The financial statements for Highland Corporation included the following selected information:

Common stock	$1,600,000
Retained earnings	$900,000
Net income	$1,000,000
Shares issued	90,000
Shares outstanding	80,000
Dividends declared and paid	$800,000

The common stock was sold at a price of $30 per share.

Required:

1. 1. What is the amount of additional paid-in capital?
2. 2. What was the amount of retained earnings at the beginning of the year?
3. 3. How many shares are in treasury stock?
4. 4. Compute earnings per share (assume the weighted average shares outstanding is equal to the shares outstanding).