The following information applies to the questions displayed below.] The equity
ID: 2476552 • Letter: T
Question
The following information applies to the questions displayed below.] The equity sections from Atticus Group's 2015 and 2016 year-end balance sheets follow. Stockholders' Equity (December 31, 2015) Common stock-$4 par value, 50,000 shares authorized, 35,000 shares issued and outstanding Pald-ln capital In excess of par value, common stock Retalned earnings $140,000 100,000 340,000 Total stockholders' equity $580,000 Stockholders' Equity (December 31, 2016) Common stock-$4 par value, 50,000 shares authorized, 41,200 shares issued, 4,000 shares In treasury Pald-In capital In excess of par value, common stock Retalned earnings ($50,000 restricted by treasury stock) $164,800 149,600 420,000 734,400 (50,000) Less cost of treasury stock Total stockholders' equity $684,400 The following transactions and events affected Its equity during year 2016. Jan. 5 Declared a $0.50 per share cash dividend, date of record January 10 Mar 20 Purchased treasury stock for cash. Apr. 5 Declared a $0.50 per share cash dividend, date of record April 10. July 5 Declared a $0.50 per share cash dividend, date of record July 10. July 31 Declared a 20% stock dividend when the stock's market value is $12 per share Aug. 14 Issued the stock dividend that was declared on July 31. Oct. 5 Declared a $0.50 per share cash dividend, date of record October 10Explanation / Answer
Net Increase in retained earning during the year = 420000-340000 = 80000
Total cash dividend paid = (35000+31000+31000+37200)=134200*.5=67100
Total stock dividend = 74400
Net income = 80000+ 67100 + 74400 = 221500
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