Description
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, 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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Explanation & Answer
Attached.
Name
Section
Date
Exercises 11-4
E11-4
Lachlin Corporation
(a)
Common Shares Outstand
6.000
(b)
Par Value
(c)
Preferred Stocks
Par Value
(d)
Dividend
36.000
Preferred Stocks
Par Value Preferred Stock
10.000
4
100
600.000
600.000
60
(e)
Dividend
Less: Dividend Paid
72.000
(36.000)
Retained Earnings
36.000
627
xercises 11-4
627
Attached.
Surname:1
Name
Tutor
Course Number
Date
Analysis of Balance Sheet
Introduction
Increasing the shareholder’s equity is very important for the sake of an organization. The
companies which are able to manage their equity in a professional manner are the one that can
actualize their growth substantially. The financial outcome of an organization can be found from
different angles in particular. The higher and efficient the financial outcome, the higher will be
the power from which they can manage their well-being. Financial statement is a sort of
document in which the actual financial position and reflections related to a company are present.
Financial statement of a company is divided into four main elements or parts which are
income statement, balance sheet, cash flow and Changes in equity. All of these elements are
essential for their long run productivity. Each of these elements of the financial statement has its
significance, and association with the compliance of the objectives of the company. Balance
Sheet is an important element of the financial statement that speci...