1. How many shares of preferred stock have been issued? (Enter you answer in tot

Question

1. How many shares of preferred stock have been issued? (Enter you answer in total number of shares, not in thousands.)

2. How many shares of common stock have been issued? (Enter you answer in total number of shares, not in thousands.)

4. If retained earnings at the beginning of the period was $236 million and $16 million was paid in dividends during the year, what was the net income for the year?

5. What was the average cost per share of the treasury stock acquired?

Problem 10-4A Analyze the stockholders' equity section (L010-7) The following information applies to the questions displayed below. The stockholders' equity section of Velcro World is presented here VELCRO WORLD Balance Sheet (partial) $ and shares in thousands) Stockholders' equity Preferred stock, $1 par value $4.600 16,000 401,000 Additional paid-in capital Total paid-in capital Retained earnings Treasury stock, 12,000 common shares 421,600 274,000 (216,000) Total stockholders' equity $ 479.600 Based on the stockholders' equity section of Velcro World, answer the following questions. Remember that all amounts are presented In thousands.

Explanation / Answer

Solution:

1. 4,600,000 shares = ($4,600 / $1 par value per share) in thousands (x 1,000)

2. 16,000,000 shares = ($16,000 / $1 par value per share) in thousands (x 1,000)

4.

(in millions)

Retained earnings, beginning $236

+ Net income ?

– Dividends (16)

= Retained earnings, ending $252

5. $18 per share ($216,000 / 12,000 shares)

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