The stockholders' equity section of Lachlin Corporation's balance sheet at December 31 is presented here.
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LACHLIN CORPORATION Balance Sheet (partial) Stockholders' equity Paid-in capital Preferred stock, cumulative, 10,0[11 shapes authorized, 6,000 Shara issued and outstanding $ 600,000 Common stock, no par, 750,000 shares authorized, 530,000 shapes issued 2,900,000 Tbta] paid-in capital 3,500,000 Retained earnings 1,158,000 Total paid—in capital and retained earnings 4, 658,000 Less: Treasury stock (6,000 common shares) 32,000 Total stockholders' equity $4,626,000
From a review of the stockholders' equity section, answer the following questions.
(a) How many shares of common stock are outstanding?
(b) Assuming there is a stated value, what is the stated value of the common stock?
(c) What is the par value of the preferred stock?
(d) If the annual dividend on preferred stock is $36,000, what is the dividend rate on preferred stock?
(e) If dividends of $72,000 were in arrears on preferred stock, what would be the balance reported for retained earnings?
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