Purpose of 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

Answer the following questions in 1,050 words using the Lachlin Corporation Balance Sheet (partial) below:

·         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?