The equity sections from Atticus Groups 2013 and 2014 year- end balance sheets follow. Stockholders Equity (December

Question:

The equity sections from Atticus Group’s 2013 and 2014 year- end balance sheets follow.

Stockholders’ Equity (December 31, 2013)

Common stock—$ 4 par value, 100,000 shares

authorized, 40,000 shares issued and outstanding . . . . . . . . . . . . . . $ 160,000

Paid- in capital in excess of par value, common stock . . . . . . . . . . . 120,000

Retained earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 320,000

Total stockholders’ equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 600,000

Stockholders’ Equity (December 31, 2014)

Common stock—$ 4 par value, 100,000 shares

authorized, 47,400 shares issued, 3,000 shares in treasury . . . . . . . $ 189,600

Paid- in capital in excess of par value, common stock . . . . . . . . . . . 179,200

Retained earnings ($ 30,000 restricted by treasury stock) . . . . . . . . 400,000

768,800

Less cost of treasury stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (30,000)

Total stockholders’ equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 738,800

The following transactions and events affected its equity during year 2014.

Jan. 5 Declared a $ 0.50 per share cash dividend, date of record January 10.

Mar. 20 Purchased treasury stock for cash.

Apr. 5 Declared a $ 0.50 per share cash dividend, date of record April 10.

July 5 Declared a $ 0.50 per share cash dividend, date of record July 10.

July 31 Declared a 20% stock dividend when the stock’s market value is $ 12 per share.

Aug. 14 Issued the stock dividend that was declared on July 31.

Oct. 5 Declared a $ 0.50 per share cash dividend, date of record October 10.

Required

1. How many common shares are outstanding on each cash dividend date?

2. What is the total dollar amount for each of the four cash dividends?

3. What is the amount of the capitalization of retained earnings for the stock dividend?

4. What is the per share cost of the treasury stock purchased?

5. How much net income did the company earn during year 2014?

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...