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Required information [The following information applies to the questions displayed below.) The equity sections for Atticus Group at the beginning of the year (January 1) and end of the year (December 31) follow. Stockholders' Equity (January 1) Common stock-$4 par value, 100,000 shares authorized, 35,000 shares issued and outstanding Paid-in capital in excess of par value, common stock Retained earnings Total stockholders' equity $140,000 100,000 360,000 $600,000 Stockholders' Equity (December 31) Common stock-$4 par value, 100,000 shares authorized, 41,400 shares issued, 3,000 shares in treasury $165,600 Paid-in capital in excess of par value, common 138,400 stock Retained earnings ($50,000 restricted by 400,000 treasury stock) 704,000 Less cost of treasury stock (50,000) Total stockholders' equity $654,000

Answer 1

1) Outstanding shares

	Jan 5	Apr 5	Jul 5	Oct 5
Outstanding share	35000	35000-3000 = 32000	32000	32000*1.20 = 38400

2) Cash dividend

	Jan 5	Apr 5	Jul 5	Oct 5
Cash dividend	35000*.50 = 17500	32000*.50 = 16000	16000	38400*.50 = 19200

5) Net income = 360000-68700-64000-400000 = $172700