Bob Wright ​

question 46

Short Answer

Bob Wright
​
Bob Wright owned 100 shares of Lawson Company's convertible preferred stock at $10 par value. He converted each share of preferred stock into three shares of common stock.
​
-Refer to Bob Wright. If common stock was selling at $4 per share on the date of conversion, compute Bob Wright's common stock worth.​

---

Definitions:

Consolidated Inventory

involves aggregating the inventories of a parent company and its subsidiaries, presenting them as a single inventory balance in the consolidated financial statements.

Outstanding Shares

The total number of shares of a corporation that are currently owned by all its shareholders, including shares held by institutional investors and restricted shares.

Straight-Line Method

A method of calculating depreciation of an asset by evenly distributing its cost over its useful life.

Shareholders' Equity

The residual interest in the assets of a corporation that remains after deducting its liabilities, representing the ownership interest of shareholders.