Omega Products Company reported the following stockholders’ equity on its balance sheet:

Requirements

1. What caused Omega’s preferred stock to decrease during 2019? Cite all possible causes.

2. What caused the company’s common stock to increase during 2019? Identify all possible causes.

3. How many shares of Omega’s common stock were outstanding at December 31, 2019?

4. Omega’s net income during 2019 was $1,430 million. How much were the company’s dividends during the year?

5. During 2019, Omega sold no treasury stock. What average price per share did the company pay for the treasury stock that it purchased during the year?

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A1 Stockholders' Equity 1 (Dollars and shares in millions except for par value) 2 Convertible preferred stock–$2.50 par value; authorized 25 shares; 3 December 31, 2019 2018 issued and outstanding: 2019 and 2018–6 and 12 shares, respectively 15 30 4 5 Common stock–$3.00 per share par value; authorized 1,300 shares; issued: 2019 and 2018–300 and 200 shares, respectively 8 Additional paid-in capital 9 Retained earnings 10 Treasury stock, common-at cost 900 1,500 6,270 600 855 4,950 2019-20 shares; 2018–10 shares (440) 8,245 $ 48,870 (180) 6,255 $ 45,130 11 12 Total stockholders' equity 13 Total liabilities and stockholders' equity 14