P11-29A The balance sheet of
Ballcraft, Inc., reported the following:
Preferrerd stock, $6 par,6% 5,000
shares authorized and issued
$30,000
Common stock $4.00
par value, 45,000
shares authorized; 10,000
shares issued $40,000
Additional paid-in-capital-common
219,000
Total paid-in-capital $289,000
Retained earnings 90,000
Total stockholders’ equity
$379,000
Preferred dividends are in
arrears for two years, including the current year. On the balance sheet date,
the market value of the Ballcraft common stock was $31 per share.
Requirements
1. Is the preferred stock
cumulative or noncumulative ? How can you tell?
2. What is the total
paid-in-capital of the company ?
3. What was the total market
value of the common stock?
4. Compute the book value per
share of the common stock?
TUTORIAL PREVIEW
Requirement 4.
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Book Value (BV) attributed to Preferred stock (P/S):
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Preferred stock account balance
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$30,000
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File name: P11-29A Ballcraft Inc.xlsx File type: xlsx PRICE:$9
