Madison Co Had the Following Components of Shareholders' Equity at the Beginning

question 127

Essay

Madison Co had the following components of shareholders' equity at the beginning of 20X7: $$\begin{array} { | l | r | } \hline \begin{array} { l } \text { Preferred shares, Class B, no par, \$2, non-cumulative, redeemable and } \\\text { retractable, } 400,000 \text { authorized, } 100,000 \text { issued and outstanding }\end{array} & \$ 2,000,000 \\\hline \begin{array} { l } \text { Common shares, unlimited number authorized, } 600,000 \text { issued and } \\\text { outstanding }\end{array} & 6,000,000 \\\hline \text { Retained earnings } & 11,400,000 \\\hline\end{array}$$ The following events took place during 20X7: $$\begin{array} { | l | l | } \hline \text { Jan } 22 & \text { Issuance of } 50,000 , \$ 3 \text { cumulative preferred shares - Class C for } \$ 30 \text { per share } \\\hline \text { Apr } 3 & 10 \% \text { common stock dividend declared and issued } \\\hline \text { Oct 10 } & \text { Common dividends declared and paid by Board of Directors of } \$ 1.50 \text { per share } \\\hline \text { Nov } 5 & \text { Repurchase of } 10,000 \$ 2 \text { no par value preferred shares for } \$ 26.50 \text { per share } \\\hline\end{array}$$ Prepare the financing activities section of the cash flow statement for the year ended December 31, 20X7.

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Definitions:

EMLA (Eutectic Mixture of Local Anesthetics)

A topical preparation used to numb the skin before procedures like needle insertion.

Transdermal Fentanyl (Duragesic)

A potent opioid analgesic patch used for managing severe pain, delivering fentanyl through the skin over time.

Oxycodone (OxyContin)

A potent opioid pain medication used to manage moderate to severe pain, known for its potential for addiction.

Milligrams

A unit of mass equal to one thousandth of a gram, often used to measure medication doses or nutritional supplements.