Stock Dividend and Treasury Stock

question 99

Essay

Stock dividend and treasury stock
At the beginning of the current year,King Cole,Inc.had 300,000 shares of capital stock outstanding and total stockholders' equity of $1,200,000.During the year,the company earned net income of $325,000,declared cash dividends of $150,000,distributed a 5% stock dividend of 15,000 shares when the market price of the stock was $16 per share,and purchased 3,000 shares of treasury stock at a cost of $13 per share.Compute the following at the end of the current year:
(a)Total stockholders' equity:
(b)Number of shares of stock outstanding:
(c)Book value per share:

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Definitions:

Word Processing

The use of computer software to create, edit, and print documents.

Office Administrator

An individual responsible for overseeing the daily operations of an office.

Printing

The process of reproducing text and images, typically with ink on paper using a printing press or a printer.

Monetary Products

typically refers to financial products or instruments that are directly related to money or the management of money, such as currency, loans, and investment vehicles; however, this term is not widely used in formal economic contexts and might be considered non-standard.