The stockholders’ equity section of Aluminum Company of America (Alcoa) showed t

Question

The stockholders’ equity section of Aluminum Company of America (Alcoa) showed the following (in alphabetical order): additional paid-in capital $6,101, common stock $925, preferred stock $55, retained earnings $7,428, and treasury stock $2,828. All dollar data are in millions.

The preferred stock has 557,740 shares authorized, with a par value of $100 and an annual $3.75 per share cumulative dividend preference. At December 31 of the current year, 557,649 shares of preferred are issued and 546,024 shares are outstanding. There are 1.8 billion shares of $1 par value common stock authorized, of which 924.6 million are issued and 844.8 million are outstanding at December 31.

Prepare the stockholders’ equity section of the current year

Can you please show calculations?

Explanation / Answer

Stockholders' equity section of the current year (all $ figures are in Million)

Preferred Stock :

557,649 shares are issued and 546,024 shares are outstanding @ 100 par value             $ 55.00

Common Stock : 924.6 million shares each $ 1 are issued

and 844.8 million are outstanding                                                                                          924.00

                                                                                                                                               979.00

Retained earnings                                              $ 7,428.00

Less: Cumulative dividend                                           2.09                                                 7425.91

Shareholders equity                                                                                                         11677.91

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