ACC 291 WEEK 4 Stockholders’ Equity Section of the Balance Sheet (Lachlin Corporation Balance Sheet)
Purpose of Assignment
The purpose of this assignment is to help you become familiar with examining the stockholders’ equity section of the balance sheet.
Resources: Financial Accounting: Tools for Business Decision Making
Answer the following questions in 1,050 words using the Lachlin Corporation Balance Sheet (partial) below:
· 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?