Question: Purpose of Assignment: The purpose of this assignment is to help you become familiar with examining the stockholders' equity section of the balance sheet.
Assignment Steps:
Resources: Financial Accounting: Tools for Business Decision Making, Ch. 11
Answer the following questions in 1,050 words using the Lachlin Corporation Balance Sheet located on p. 575 of Financial Accounting:
1. How many shares of common stock are outstanding?
2. Assuming there is a stated value, what is the stated value of the common stock?
3. What is the par value of the preferred stock?
4. If the annual dividend on preferred stock is $36,000, what is the dividend rate on preferred stock?
5. If dividends of $72,000 were in arrears on preferred stock, what would be the balance reported for retained earnings?
Use the Week 4 Excel® spreadsheet and submit with your answers.