STATEMENT OF SHAREHOLDERS' EQUITY - PRACTICE PROBLEM The following is the Statement of Shareholders' Equity for Merriweather Company (shares in units and amounts in dollars) Common Stock Treasury Stock Shares issued or outstanding Par Value APIC Retained Earnings Shares Cost Total Balance, December 31, 2009 50,000 New Stock issued 20,000 $50,000 20,000 $140,000 $65,000 3,500 ($7,000) $248,000 54,000 74,000 Net Income 86,500 86,500 Dividends Declared (12,800) (12,800) Stock Repurchased 1,250 (5,000) (5,000) Stock Reissued 2,250 Balance, December 31, 2010 70,000 $70,000 $196,250 $138,700 (1,000) 3,750 2,000 $(10,000) 4,250 $394,950 22 STATEMENT OF SHAREHOLDERS' EQUITY - PRACTICE PROBLEM (ALL QUESTIONS FOR 2010) What are Merriweather net earnings and dividends declared for the year? How many shares are outstanding at 12/31/2010? At what price did they issue new shares of common stock? At what price did they repurchase treasury stock this year? How much cash did they get from reissuance of treasury stock