(7 points) Kilgore Auto Parts reported the following information at December 31,
ID: 2594152 • Letter: #
Question
(7 points) Kilgore Auto Parts reported the following information at December 31, 2004; Preferred stock, 10%$24 par value, cumulative Common stock, $2.50 par value Additional paid-in capital- Common stock Retained earnings 3 $60,000 10,000 30,000 50.000 150,000 (5,.000) 145.000 Total contributed capital and retained earnings Less: Treasury stock (100 shares common stock at cost) Total stockholders' equity 1. How many shares of common stock are issued? 2. How many shares of preferred stock are issued? 3. How many shares of common stock are outstanding? 4. What was the average price paid for the treasury shares when the company reaquired them? 5. What is the dividend PER SHARE that pref erred shareholders are entitled to when a dividend is declared? 6. What was the average price of common shares when they were issued? If a 45% stock dividend were issued, by how much would the total stockholders' equity balance change? 7,Explanation / Answer
1. How many shares of common stock are issued? _____4,000________
10,000 / 2.50 par = 4,000
2. How many shares of preferred stock are issued? _____2,500________
60,000 / 24 = 2,500
3. How many shares of common stock are outstanding? ______3,900________
4,000 - 100 treasury stock = 3,900
4. What was the average price paid for the treasury shares when the company required them?___$50___
5,000 / 100 = $50
5.. What is the dividend PER SHARE that preferred shareholders are entitled to when a dividend is declared? ________$2.40__________
$24 par value x 10% = $2.40
6. What was the average price of common shares when they were issued? ____$22.50______
(60,000 par + 30,000) / 4,000 shares issued = $22.50
7. If a 45% stock dividend were issued, by how much would the total stockholders’ equity balance change?
No, stock dividends won't affect total stockholder's equity.
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