27) Par For the Course, Inc.’s financial statement included the following section:
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12/31/11
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Preferred stock, $100 par, 5% noncumulative
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$ 40,000
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Common stock, $2 par value
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60,000
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Additional paid-in capital, common stock
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480,000
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Retained earnings
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60,000
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Treasury stock (1,000 shares)
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(8,000)
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Total shareholders’ equity
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$632,000
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1.
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From which financial statement did the above information come?
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2.
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How many shares of common stock have been issued?
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shares
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3.
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What was the average selling price of a share of common stock?
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$
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4.
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How many shares of preferred stock are issued?
|
shares
|
5.
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If you hold one share of the preferred stock, how much of a dividend would you expect for the year?
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$
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6.
|
Beginning retained earnings is $50,000 and net income is $17,800. How much of the dividends go to the common shareholders?
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$
|
7.
|
If you hold one share of the common stock, how much of a dividend would you receive?
|
$
|
|
|
|
28) Match each of the following items with the appropriate definition. Each item should be used only once.
a. additional paid-in capital
b. preferred stock
c. authorized
d. capital stock
e. outstanding
f. treasury stock
g. contributed capital
h. issued
i. par value
______ 1. Type of corporate stock that has preference rights over common stock
______ 2. Owners’ contributions to a firm
______ 3. Shares of ownership in a corporation
______ 4. The excess over par value received by a corporation when it issued stock
______ 5. Stock of a corporation that has been issued and has been repurchased by the issuing corporation
______ 6. The total number of shares a corporation may sell to investors as permitted by the corporation’s state charter
______ 7. Shares that have been sold to investors by a corporation
______ 8. Shares that have been issued and not held in the corporation’s treasury
______ 9. An arbitrary amount printed on a share of stock assigned by the corporation