Exercise 11-4 The stockholders\' equity section of Flint Corporation\'s balance

Question

Exercise 11-4 The stockholders' equity section of Flint Corporation's balance sheet at December 31 is presented here. FLINT CORPORATION Balance Sheet (partial) Stockholders' equity Paid-in capital Preferred stock, cumulative, 11,667 shares authorized, 7,000 shares issued and outstanding 735,000 2,795,000 3,530,000 1,197,000 4,727,000 42,133 $4,684,867 Common stock, no par, 722,845 shares authorized, 559,000 shares issued Total paid-in capital Retained earnings Total paid-in capital and retained earnings Less: Treasury stock (7,900 common shares) Total stockholders' equity From a review of the stockholders' equity section, answer the following questions (a) How many shares of common stock are outstanding? Common stock outstanding shares (b) Assuming there is a stated value, what is the stated value of the common stock? The stated value of the common stock per share

Explanation / Answer

a Common stock outstanding = 559000-7900= 551100 b Stated value = 2795000/559000= 5 c Par value of preferred stock = 735000/7000= 105 d Dividend rate = 58800/735000= 8% e Retained earnings balance = 1197000-77100= 1119900

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