Balance sheet help
Preferred stok-$5.00 par 50,000 balance
Common stock-$2 par 100,000 balance
Problem:
Stock information
*Authorized to sell 75,000 shares of its preferred stock although this class of stock is $3 dividened value it passed on declaring a dividend this past year
*authorized to sell 200,000 shares of common stock
To analyze the balance sheet, we need to understand the different components of the stock information provided.
1. Preferred Stock:
- Par value: $5.00
- Balance: 50,000 shares
2. Common Stock:
- Par value: $2.00
- Balance: 100,000 shares
Additional Details:
- Preferred stock: The company is authorized to sell a total of 75,000 shares of preferred stock. These shares have a dividend value of $3 but no dividend was declared in the past year.
- Common stock: The company is authorized to sell a total of 200,000 shares of common stock.
Now, let's analyze the balance sheet using this information.
1. Total Preferred Stock Value:
To calculate the total value of the preferred stock, you can multiply the par value by the number of shares:
Total Preferred Stock Value = Par Value * Number of Shares
Total Preferred Stock Value = $5.00 * 50,000 shares
Total Preferred Stock Value = $250,000
2. Total Common Stock Value:
Similarly, to calculate the total value of the common stock, multiply the par value by the number of shares:
Total Common Stock Value = Par Value * Number of Shares
Total Common Stock Value = $2.00 * 100,000 shares
Total Common Stock Value = $200,000
3. Authorized Shares Remaining:
To determine the number of authorized shares remaining, you subtract the issued shares from the authorized shares:
Authorized Shares Remaining = Authorized Shares - Issued Shares
For preferred stock: 75,000 - 50,000 = 25,000 authorized shares remaining
For common stock: 200,000 - 100,000 = 100,000 authorized shares remaining
By analyzing this information, you can determine the current value of the preferred and common stock, as well as the number of authorized shares still available for issuance.