The stockholders’ equity section on the balance sheet of Dillard’s, a popular de

Question

The stockholders’ equity section on the balance sheet of Dillard’s, a popular department store, is shown below. The company reported a net income of $241,265,000 and declared and paid dividends of $11,907,000 in 2012

41

(931,560)

Calculate the value of common stock, class A at par value for 2012? (Enter your answer in thousands.)

Calculate the number of shares of class A of common stock outstanding in 2011 and in 2012?

Calculate the value of retained earnings for 2011? (Enter your answer in thousands.)

At the end of 2012, have the treasury stock transactions increased corporate resources or decreased corporate resources? By how much?(Enter the amount as positive value. Enter your answer in thousands.)

By how much did the treasury stock transactions, that occurred during 2012, increased (decreased) stockholders’ equity during 2012 compared to 2011? (Enter the amount as positive value. Enter your answer in thousands.)

What is the average cost per share of the treasury stock held as of the end of 2012? (Round your answer to 2 decimal places.)

Stockholders’ Equity (in thousands): 2012 2011 Common stock, Class A—116,580,308 and 116,605,495 shares issued; ? and ?
  shares outstanding ? 1166 Common stock, Class B (convertible)—4,050,929 shares
  issued and outstanding 41

41

Additional paid-in capital 764,055 780,987 Retained earnings 2,587,727 ? Less treasury stock, at cost, Class A—47,146,748
  and 45,410,148 shares (957,021)

(931,560)

Explanation / Answer

Blanks duely filled:

41

(931,560)

the par value of common stock = $1166000 / 116,605,495 = $0.01

the value of common stock, class A at par value for 2012 = 116,580,308 * $0.01 = $1166 ('000)

Retained Earning 2011 = R.E. 2012 $2587727000 - N. Income $241265000 + Dividend 2012 $11907000 = $2358369000 or $2358369 ('000)

At the end of 2012, the treasury stock transactions decreased corporate resources by $25461 ('000) .

the average cost per share of the treasury stock held as of the end of 2012 = $957,021,000 / 47,146,748 = $20.30

Stockholders’ Equity (in thousands): 2012 2011 Common stock, Class A—116,580,308 and 116,605,495 shares issued; 116,580,308 and 116,605,495 shares outstanding 1166 1166 Common stock, Class B (convertible)—4,050,929 shares
  issued and outstanding 41

41

Additional paid-in capital 764,055 780,987 Retained earnings 2,587,727 2,358,369 Less treasury stock, at cost, Class A—47,146,748
  and 45,410,148 shares (957,021)

(931,560)

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