The stockholders’ equity section on the balance sheet of Dillard’s, a popular de

Question

The stockholders’ equity section on the balance sheet of Dillard’s, a popular department store, is shown below. The company reported a net income of $241,265,000 and declared and paid dividends of $11,907,000 in 2012

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Calculate the value of common stock, class A at par value for 2012? (Enter your answer in thousands.)

Calculate the number of shares of class A of common stock outstanding in 2011 and in 2012?

Calculate the value of retained earnings for 2011? (Enter your answer in thousands.)

At the end of 2012, have the treasury stock transactions increased corporate resources or decreased corporate resources? By how much? (Enter the amount as positive value. Enter your answer in thousands.)

By how much did the treasury stock transactions, that occurred during 2012, increased (decreased) stockholders’ equity during 2012 compared to 2011? (Enter the amount as positive value. Enter your answer in thousands.)

What is the average cost per share of the treasury stock held as of the end of 2012? (Round your answer to 2 decimal places.)

Stockholders’ Equity (in thousands):
2012 2011 Common stock, Class A—116,580,308 and 116,605,495 shares issued; ? and ?
  shares outstanding ? 1166 Common stock, Class B (convertible)—4,050,929 shares
  issued and outstanding 41

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Additional paid-in capital 764,055 780,987 Retained earnings 2,587,727 ? Less treasury stock, at cost, Class A—47,146,748
  and 45,410,148 shares (957,021) (931,560)

Explanation / Answer

Value of common stock, class A at par value for 2012 1166-((957021-931560)/1000) = 1141 Number of shares of class A of common stock outstanding in Year No.of shares issued Treasury stock No.of shares o/s 1 2 1 Less 2 2011 116605495 45410148 71195347 2012 116580308 47146748 69433560 Value of retained earnings for 2011 Retained Earnings Account for 2012 Debit Credit Opening Balance(2011)(Plug-in-fig) 226744812 2012 Net Income 241265000 Dividends paid in 2012 11907000 Treasury stockPurchase(957021-931560) 25461 Closing balance 2587727 241265000 241265000 Value of retained earnings for 2011= (From the above) -226744.8 Treasury stock transactions decreased corporate resources by 25461 Cash is paid for the repurchase of the stock from the market Treasury stock transactions, that occurred during 2012, decreased stockholders’ equity during 2012 by (957021-931560)= 25461 Average cost per share of the treasury stock held as of the end of 2012 Year Cost/No.of shares Per share cost 2011 931560/45410148= 0.0205144 2012 957021/47146748= 0.0202988 Average 0.0204066 Average cost per share of the treasury stock= 0.020407

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