Lachlin Corporation Stockholders Equity

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: 

E11-4 The stockholders' equity section of Lachlin Corporation's balance sheet at December 31 is presented here.

• 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?