Fast Start Corporation manufactures automobile ignitions. Selected portions of the company’s recent financial statements are given below.
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Fast Start Corporation |
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Stockholders’ equity: |
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Common stock, $0.50 par value, 2,000,000 shares authorized, 1,400,000 shares issued |
$700,000 |
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Paid In capital in excess of par value |
8,200,000 |
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Retained earnings |
4,600,000 |
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Treasury stock (60,000 shares at cost) |
480,000 |
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Total stockholders’ equity |
$13,020,000 |
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Fast Start Corporation |
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Common |
Paid In |
Retained |
Treasury |
Total |
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31 Dec 03 |
$650 |
$7,450 |
$4,035 |
($260) |
$11,875 |
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Net income |
900 |
900 |
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Dividends |
335 |
335 |
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Stock purchased |
220 |
220 |
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Stock issued |
50 |
750 |
800 |
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31 Dec 04 |
$700 |
$8,200 |
$4,600 |
$480 |
$13,020 |
a. What was Fast Start’s total contributed capital at year end?
b. How many shares of common stock were outstanding at year end?
c. What dollar amount of treasury stock did Fast Start hold at year end?
d. What dollar amount of treasury stock did Fast Start repurchase during the year? How much common stock did the company issue?
e. What was the amount of dividends paid during the year?
f. How much cash flow came from financing activities associated with shareholders’ equity during the current year, excluding the effect of net income? What were the sources of that cash flow?
g. How much net income came from financing activities associated with stockholders’ equity during the current year?