Answer the following questions in 1,050 words using the Lachlin Corporation Balance Sheet located on p. 575 of Financial Accounting:
•How many shares of common stock are outstanding?
•Assuming there is a stated value, what is the stated value of the common stock?
•What is the par value of the preferred stock?
•If the annual dividend on preferred stock is $36,000, what is the dividend rate on preferred stock?
•If dividends of $72,000 were in arrears on preferred stock, what would be the balance reported for retained earnings?
Use the Week 4 Excel® spreadsheet and submit with your answers.