The balance sheet of Lamont Bros. follow:

(a) What portions of Lamont's assets were provided by debt, contributed capital, and earned capital? Reduce contributed capital by the cost of the treasury stock.
(b) Compute the company's debt/equity ration if the preferred stock issuance was classified as a long-term debt.
(c) In most states, to what dollar amount of dividends would the company be limited?

ASSETS LIABILITIES AND SHAREHOLDERS' EQUITY S 85,000 315,000 S 52,000 35,000 50,000 80,000 Current assets Noncurrent assets Current liabilities Long-term note payable Preferred stock Common stock Additional paid-in capital: Preferred stock 50,000 Common stock 100,000 113,000 (80,000) Retained earnings Less: Treasury stock Total liabilities and shareholders' equity Total assets S400,000 $400,000