P8-7B. Analyze equity section of balance sheet. (LO I, 2, 5)

At June 30, 2007, High Quality Mining Company reported the following on its comparative balance sheet, which included 2006 amounts for comparison (amounts in millions).

June 30 2007

June 30 2006

Common stock

Authorized: 2,500 shares

$ 14,500

lssued:1 ,450 shares in 2007

1,400 shares in 2006

$ 14,000

Paid-in capital in excess of par

4,350

2,890

Retained earnings

15,500

14,300

Required

a. What is the par value of the company’s common stock?

b. Did the company issue any new shares during the fiscal ended June 30, 2007?

c. What was the approximate (average) issue price of the stock issued during the year?

d. Did High Quality Mining Company earn net income (loss) during the year?

Assuming no dividends were paid this year, what was net income (loss X)