Delta Products Company reported the following stockholders€™ equity on its balance sheet:

Requirements
1. What caused Delta€™s preferred stock to decrease during 2015? Cite all possible causes.
2. What caused Delta€™s common stock to increase during 2015? Identify all possible causes.
3. How many shares of Delta€™s common stock were outstanding at December 31, 2015?
4. Delta€™s net income during 2015 was $1,368 million. How much were Delta€™s dividends during the year?
5. During 2015, Delta sold no treasury stock. What average price per share did Delta pay for the treasury stock that the company purchased during theyear?

Transcribed Image Text:

Stockholders' Equity (Dollars and shares in millions) Convertible preferred stock-$1.00 par value; authorized 20 shares December 31, 2015 2014 issued and outstanding 2015 and 2014-4and 8 shares, respectively Common stock-$1 per share par value; authorized 1,500 shares; issued: 2015 and 2014-300 and 200 shares, respectively Additional paid-in capital Retained earnings Treasury stock, common-at cost 300 1,400 200 650 6195 5,135 2015-24 shares; 2014-12 shares Total stockholders' equity Total liabilities and stockholders' equity (130) 5,863 48,484 42,673 (270) 7,629