Answer the following questions in 1,050 words using the Lachlin Corporation Balance Sheet located below instructions:
- How many shares of common stock are outstanding?
- Assuming there is a stated value, what is the stated value of the common stock?
- What is the par value of the preferred stock?
- If the annual dividend on preferred stock is $36,000, what is the dividend rate on preferred stock?
- If dividends of $72,000 were in arrears on preferred stock, what would be the balance reported for retained earnings?
*Use the attached Excel® spreadsheet and submit with your answers.
Lachlin Corporation Balance Seet
– Preferred stock, cumulative, 10,000 shares authorized,
6,000 shares issued and outstanding $ 600,000
– Common stock, no par, 750,000 shares authorized, 580,00
shares issued $2,900,000
– Total 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