Pranks, Inc. is a manufacturer of joke and novelty products for perpetrators of practical jokes. The corporation has paid several cash dividends throughout 2016, and is also declaring a stock dividend to its stockholders as the calendar year-end approaches. You've been brought in as a consultant to assist with this process, and also to help determine whether some missing information can be calculated before the distribution of the stock dividend is made. The company has two classes of stock: common stock and cumulative preferred stock.
You've been able to retrieve the following information so far:
Number of common shares authorized........................800,000
Number of common shares issued...............................650,000
Par value of common shares...............................................$20
Par value of cumulative preferred shares...........................$30
Paid-in capital in excess of par-common stock......$7,000,000
Paid-in capital in excess of par-preferred stock....................$0
Total retained earnings before the stock dividend is declared $33,500,000

1. The accounting manager for the company prepared the schedule of cash dividends paid over the period 2011-2016 on the Pranks, Inc. panel. However, one of the reasons for Pranks, Inc.'s missing information is that the manager is away on vacation and is unreachable by phone, because he is backpacking on a remote island that does not have cell phone reception. Management would like you to determine some information from the data you've collected regarding its outstanding stock.
Fill in the answers below.
How many shares of common stock are outstanding?
How many shares of preferred stock are outstanding?
What is the preferred dividend as a percent of par?
Does Pranks, Inc. have any treasury stock? How can you tell?
No, because the preferred stock cash dividend is always greater than zero.
Yes, because the number of shares authorized is greater than the number of shares issued.
No, because the common stock cash dividend is not always zero.
Yes, because the number of shares issued is greater than the number of shares outstanding.
2. For which years has Pranks, Inc. paid cumulative preferred dividends in arrears?
Check all that apply.
2011
2012
2013
2014
2015
2016

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Total Cash Preferred Dividends Common Dividends Year Dividends Total Per Share Total Per Share 2011 20,000 20,000 0.20 0.00 36,000 2012 36,000 0.36 0.00 34,000 2013 79,000 0.34 45,000 0.09 0.15 2014 105,000 30,000 0.30 75,000 0.30 2015 120,000 30,000 90,000 0.18 2016 150,000 0.30 180,000 30,000 0.30