The stockholders’ equity section of Velcro World is presented here. Based on the

Question

The stockholders’ equity section of Velcro World is presented here.

Based on the stockholders' equity section of Velcro World, answer the following questions. Remember that all amounts are presented in thousands.

1. How many shares of preferred stock have been issued?

number of shares?

2. How many shares of common stock have been issued?

number of shares?

4. If retained earnings at the beginning of the period was $238 million and $18 million was paid in dividends during the year, what was the net income for the year?

Net income?(Million)

5. What was the average cost per share of the treasury stock acquired?

VELCRO WORLD
Balance Sheet (partial)   ($ and shares in thousands)   Stockholders' equity:   Preferred stock, $1 par value $ 4,800      Common stock, $1 par value 18,000      Additional paid-in capital 483,600           Total paid-in capital 506,400      Retained earnings 276,000      Treasury stock, 10,000 common shares (200,000)        Total stockholders' equity $ 582,400   

Explanation / Answer

1. Number of share issued of preferred stock = 4800 shares

2. Number of shares issued of common stock = 18000 shares

4. Net income for the year = (238-18-276) = 56 million

5. Average cost per share of the treasury stock = (200/10) = 20 per share

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