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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?
Use the Week 4 Excel spreadsheet and submit with your answers.
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