Question

For a recent 2-year period, the balance sheet of Sarasota Company showed the following stockholders' equity data at December 31 (in millions). 2020 2019 Additional paid-in capital $940 $ 842 Common stock 663 651 Retained earnings 7,210 5,320 Treasury stock 1,634 858 Total stockholders' equity $7,179 $5,955 Common stock shares issued 221 Common stock shares authorized 500 217 500 26 Treasury stock shares 38 (a) Answer the following questions. (1) What is the par value of the common stock? (Round par value to 2 decimal places, e.g. $3.15.) Par value of common stock $

Answer 1

| 1 a) 2 1) 3 Particulars 4 Value of common stock 5 (1) Number of common stock 6 Par value of common stock 2019 $651,000,000 $221,000,000 2020 $663,000,000 $217,000,000 $3 2019 8 2) 9 Particulars 10 Value of Treasury stock 11 () Number of Treasury stock 12 Cost per share of Treasury stock 13 $858,000,000 $26,000,000 $33 2020 $1,634,000,000 $38,000,000 $43

A 2. 1 b) Stockholder's equity section at December 31, 2020 3 Particulars Amount($millions) Amount($millions) 4. Common stock $3 par, 5 $500 million shares Authorized 6 $221 million shares issued 7 $38 million shares in treasury 663 8 Additional paid in capital 940 9 Total paid in capital 1603 10 11 Retained earnings 7210 12 Less: Treasury stock 1634 5576 13 Total stockholder's equity 7179 14