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Stockholders’ Equity Section Of The Balance Sheet

03/04/2020 Client: jessical Deadline: 2 Day

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:


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?

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