Changes in stockholders\' equity Listed are the equity sections of balance sheet

Question

Changes in stockholders' equity Listed are the equity sections of balance sheets for years 2014 and 2015 as reported by Mountain Air Ski Resorts, Inc. The overall value of stockholders' equity has risen from $1,800,000 to $7,200,000. Use the statements to discover how and why this happened. The company paid total dividends of $210,000 during fiscal 2015. What was Mountain Air's net income for fiscal 2015? How many new shares did the corporation issue and sell during the year? At what average price per share did the new stock sold during 2015 sell? At what price per share did Mountain A if s original 480,000 shares sell? Mountain Air's net income for fiscal 2015 is $. (Round to the nearest dollar.) The number of new shares issued is shares. (Round to the nearest integer.) The price per share of the new stock sold during 2015 is $. (Round to the nearest cent.) The original price of the shares was $. (Round to the nearest cent.)

Explanation / Answer

a) retained earnings in 2015= net income-dividends
1,500,000= x-210,000
x=1,710,000

b)ne shared issued and sold in 2015= 1,600,000-480,000
=1,120,000

c)(par value+ excesspar)
=[1,120,000+(4,100,000-520,000)]/1,120,000
=4.2

d)price=(480,000+520,0000)/480,000
=2.08

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