The stockholders’ equity section of The Seventies Shop is presented here.THE SEVENTIES SHOP Balance Sheet (partial)($ in thousands)Stockholders’ equity:Preferred stock, $50 par value            $ –0–Common stock, $5 par value             20,000Additional paid-in capital                 100,000Total paid-in capital                          120,000Retained earnings                              53,000Treasury stock                                    (3,700)Total stockholders’ equity               $ 169,300Required:Based on the stockholders’ equity section of The Seventies Shop, answer the following questions. Remember that all amounts are presented in thousands.1. How many shares of preferred stock have been issued?2. How many shares of common stock have been issued?3. Total paid-in capital is $120 million. At what average price per share were the common shares issued?4. If retained earnings at the beginning of the period was $45 million and net income during the year was $9,907,500, how much was paid in dividends for the year?5. If the treasury stock was purchased for $20 per share, how many shares were purchased?6. How much was the dividend per share? (Hint: Dividends are not paid on treasury stock.)

Question

The stockholders’ equity section of The Seventies Shop is presented here.

THE SEVENTIES SHOP Balance Sheet (partial)
($ in thousands)
Stockholders’ equity:
Preferred stock, $50 par value            $ –0–
Common stock, $5 par value             20,000
Additional paid-in capital                 100,000
Total paid-in capital                          120,000
Retained earnings                              53,000
Treasury stock                                    (3,700)
Total stockholders’ equity               $ 169,300

Required:
Based on the stockholders’ equity section of The Seventies Shop, answer the following questions. Remember that all amounts are presented in thousands.
1. How many shares of preferred stock have been issued?
2. How many shares of common stock have been issued?
3. Total paid-in capital is $120 million. At what average price per share were the common shares issued?
4. If retained earnings at the beginning of the period was $45 million and net income during the year was $9,907,500, how much was paid in dividends for the year?
5. If the treasury stock was purchased for $20 per share, how many shares were purchased?
6. How much was the dividend per share? (Hint: Dividends are not paid on treasury stock.)

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