accounting problem 416658
Aug 29, 2021 | Uncategorized
|
The year end balance sheet of Smithfield Products includes the following stockholders’ equity section
(with certain details omitted):
|
| Stockholders’ equity: |
|
|
| 71/2% cumulative preferred stock, $100 par value, 100,000 shares authorized |
$ |
2,700,000 |
| Common stock, $2 par value, 900,000 shares authorized |
|
900,000 |
| Additional paid in capital: Common stock |
|
9,000,000 |
| Retained earnings |
|
2,595,000 |
|
|
|
| Total stockholders’ equity |
$ |
15,195,000 |
| |
|
|
|
| From this information, compute answers to the following questions: |
| a. |
How many shares of preferred stock have been issued?
|
| Number of shares of preferred stock |
|
| b. |
What is the total amount of the annual dividends paid to preferred stockholders?(Round intermediate calculations to 2 decimal places. Omit the “$” sign in your response)
|
| Annual preferred stock dividend |
$ |
| c. |
How many shares of common stock are outstanding?
|
| Number of shares of common stock |
|
| d. |
What was the average issuance price per share of common stock?(Round your answers to2decimal places. Omit the “$” sign in your response)
|
| e. |
What is the amount of legal capital?(Omit the “$” sign in your response)
|
| f. |
What is the total amount of paid in capital?(Omit the “$” sign in your response)
|
| g. |
What is the book value per share of common stock? (There are no dividends in arrears.)(Round your answers to2decimal places. Omit the “$” sign in your response)
|
| h. |
Assume that retained earnings at the beginning of the year amounted to $717,500 and that net income for the year was $3,970,000. What was the dividend declared during the year oneach shareof common stock? (Hint: Net income increases retained earnings, whereas dividends decrease retained earnings.)(Round your intermediate and final answers to2decimal places. Omit the “$” sign in your response)
|
| Dividend per share of common stock |
$
|
