The balance sheet of Beechcraft, Inc., reported the following:

Preferred dividends are in arrears for two years, including the current year. On the balance sheet date, the market value of the Beechcraft common stock was \(\$ 30\) per share.

Requirements 

1. Is the preferred stock cumulative or noncumulative? How can you tell?

2. What is the total paid-in capital of the company?

3. What was the total market value of the common stock?

4. Compute the book value per share of the common stock. 

Transcribed Image Text:

Stockholders' Equity Paid-in capital: Preferred stock, $5 par, 6%, 1,000 shares authorized and issued............. Common stock, $1 par, 40,000 shares authorized; 16,000 shares issued...... Additional paid-in capital-common.. Retained earnings............. Total stockholders' equity. $ 5,000 16,000 214,000 235,000 70,000 $305,000