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C Not Secure ezto.mheducation.com/hm.tpx Problem 10-4A Analyze the stockholders\

ID: 2581158 • Letter: C

Question

C Not Secure ezto.mheducation.com/hm.tpx Problem 10-4A Analyze the stockholders' equity section (L010-7) The following information applies to the questions displayed below) The stockholders' equity section of Velcro World is presented here VELCRO WORLD Balance Sheet (partial) $ and shares in thousands) Stockholders' equity Preferred stock, $1 par value Common stock, $1 par value Additional paid-in capital 6,000 30,000 1,164,000 Total paid-in capital Retained earnings Treasury stock, 11,000 common shares 1,200,000 288,000 (352,000) Total stockholders' equity $ 1136.000 Based on the stockholders' equity section of Velcro World, answer the following questions. Remember th References Section Break Analyze the etoe 4to equity section OL0107) F3 FI F5 F6 3 4

Explanation / Answer

1.Preferred share issued = 6000/1 =6000 shares

2. Common share issued = 30000/1 = 30000 shares

3. Common share issued price =

Common share additional paid in capital = (30000*29) = 870000

Total additional paid in capital = 1164000

Preferred share additional paid in capital (1164000-870000) = 294000

Preferred share issued price = (294000+6000/6000) = 50 per share

4. Net income = Ending retained earning+dividends-beginning retained earnings

                      = 288+30-250

Net income = 68

5) Average Cost per share for tresury stock = 352000/11000 = 32 per share