The Torre Company has the following balances in stockholde
Question and Solution
The Torre Company has the following balances in stockholders equity on December 31st. Common Stock - $5.00 par, 60,000 issued $300,000Additional paid in capital - common 600,000Preferred stock - $100 par, 5,000 issued 500,000Additional paid in capital - preferred 100,000Retained earnings 200,000Treasury stock (cost - $12.00 per share) 60,000Answer the following questions:1. How many shares of treasury stock are owned? 2. What was the average market price per share at which common stock was issued?3. What was the average market price per share at which preferred stock was issued?4. What is the total value of the Paid in Capital portion of stockholders equity?5. What is the total value of stockholders equity?6. How many shares of common stock are outstanding?7. If net income for the year was $75,000 and a preferred stock dividend of $20,000 was paid, what was the beginning value of retained earnings? How much is earnings per share for the year?