The shareholders' equity section of Charley Corporation is as follows:

Instructions
Review the shareholders' equity section and write a memo to the company president answering the following questions.
(a) How many common shares have been issued?
(b) How many preferred shares have been authorized?
(c) What are possible sources of contributed surplus?
(d) Explain what causes retained earnings to change each year.
(e) How much must be paid to preferred shareholders when dividends are declared, assuming the company has not declared or paid dividends in 2016 and 2017?

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CHARLEY CORPORATION Balance Sheet (partial) December 31, 2017 Contributed capital $2 cumulative preferred shares, 10,000 shares authorized, 6,000 shares issued $ 300,000 Common shares, 750,000 shares authorized, 600,000 shares issued 1,200,000 10,000 1,510,000 1,858,000 S3,368,000 Contributed surplus Total contributed capital Retained earnings Total shareholders' equity