The stockholders' equity of Palepu Company at December 31. 2018. appears below.

Common stock, $10 par value, 200,000 shares authorized;
80,000 shares issued and outstanding	$800,000
Paid-in capital in excess of par value	480,000
Retained earnings	305,000

During 2019. the following transactions occurred:

May 12 Declared and issued a 7% stock dividend; the common stock market value was $18 per share.

Dec. 31 Declared and paid a cash dividend of 75 cents per share.

Using the financial statement effects template, illustrate the effects of these transactions.

Skinner Company began business on June 30, 2018. At that time, it issued 18,000 shares of $50 par value, 6% cumulative preferred stock, and 90,000 shares of$10 par value common stock. Through the end of 2020, there has been no change in the number of preferred and common shares outstanding. b. Assume that Skinner declared and paid cash dividends of $0 in 2018,$108,000 in 2019, and $189,000 in 2020. Compute the total cash dividends and the dividends per share paid to each class of stock in 2018, 2019, and 2020.

Skinner Company began business on June 30, 2018. At that time, it issued 18,000 shares of $50 par value, 6% cumulative preferred stock, and 90,000 shares of$10 par value common stock. Through the end of 2020, there has been no change in the number of preferred and common shares outstanding. a. Assume that Skinner declared and paid cash dividends of $63,000 in 2018,$0 in 2019, and $378,000 in 2020. Compute the total cash dividends and the dividends per share paid to each class of stock in 2018, 2019, and 2020.

The following is the stockholders' equity section from Chipotle Mexican Grill, lnc.'s balance sheet (in thousands, except per share data).

$$\begin{array}{lr} & \text{December}\\ \text{Shareholders' Equity} & 31, 2017\\ \hline \text{ Preferred stock, \$0.01 par value, 600,000 shares authorized, no shares issued as of }& \$ \hspace{35pt} \text{\textemdash} \\ \quad \text{ December 31, 2017 }\\ \text{ Common stock, \$0.01 par value, 230,000 shares authorized, and 35,852 shares }\\ \quad \text{ issued as of December 31, 2017 }& 359 \\ \text{ Additional paid-in capital }& 1,305,090 \\ \text{ Treasury stock, at cost, 7,826 common shares at December 31, 2017 }& (2,334,409) \\ \text{ Accumulated other comprehensive income (loss) }& (3,659) \\ \text{ Retained earnings }& \underline{2,397,064} \\ \text{ Total shareholders' equity }& \underline{\underline{\$1,364,445}} \end{array}$$

Give three reasons why a company such as Chipotle would want to repurchase almost $2,350 million of its common stock.

The following is the stockholders' equity section from Chipotle Mexican Grill, lnc.'s balance sheet (in thousands, except per share data).

$$\begin{array}{lr} & \text{December}\\ \text{Shareholders' Equity} & 31, 2017\\ \hline \text{ Preferred stock, \$0.01 par value, 600,000 shares authorized, no shares issued as of }& \$ \hspace{35pt} \text{\textemdash} \\ \quad \text{ December 31, 2017 }\\ \text{ Common stock, \$0.01 par value, 230,000 shares authorized, and 35,852 shares }\\ \quad \text{ issued as of December 31, 2017 }& 359 \\ \text{ Additional paid-in capital }& 1,305,090 \\ \text{ Treasury stock, at cost, 7,826 common shares at December 31, 2017 }& (2,334,409) \\ \text{ Accumulated other comprehensive income (loss) }& (3,659) \\ \text{ Retained earnings }& \underline{2,397,064} \\ \text{ Total shareholders' equity }& \underline{\underline{\$1,364,445}} \end{array}$$

At what average cost has Chipotle repurchased its treasury stock as of December 31, 2017?

The following is the stockholders' equity section from Chipotle Mexican Grill, lnc.'s balance sheet (in thousands, except per share data).

$$\begin{array}{lr} & \text{December}\\ \text{Shareholders' Equity} & 31, 2017\\ \hline \text{ Preferred stock, \$0.01 par value, 600,000 shares authorized, no shares issued as of }& \$ \hspace{35pt} \text{\textemdash} \\ \quad \text{ December 31, 2017 }\\ \text{ Common stock, \$0.01 par value, 230,000 shares authorized, and 35,852 shares }\\ \quad \text{ issued as of December 31, 2017 }& 359 \\ \text{ Additional paid-in capital }& 1,305,090 \\ \text{ Treasury stock, at cost, 7,826 common shares at December 31, 2017 }& (2,334,409) \\ \text{ Accumulated other comprehensive income (loss) }& (3,659) \\ \text{ Retained earnings }& \underline{2,397,064} \\ \text{ Total shareholders' equity }& \underline{\underline{\$1,364,445}} \end{array}$$

How many shares of Chipotle common stock are outstanding as of December 31, 2017?

The following is the stockholders' equity section from Chipotle Mexican Grill, lnc.'s balance sheet (in thousands, except per share data).

$$\begin{array}{lr} & \text{December}\\ \text{Shareholders' Equity} & 31, 2017\\ \hline \text{ Preferred stock, \$0.01 par value, 600,000 shares authorized, no shares issued as of }& \$ \hspace{35pt} \text{\textemdash} \\ \quad \text{ December 31, 2017 }\\ \text{ Common stock, \$0.01 par value, 230,000 shares authorized, and 35,852 shares }\\ \quad \text{ issued as of December 31, 2017 }& 359 \\ \text{ Additional paid-in capital }& 1,305,090 \\ \text{ Treasury stock, at cost, 7,826 common shares at December 31, 2017 }& (2,334,409) \\ \text{ Accumulated other comprehensive income (loss) }& (3,659) \\ \text{ Retained earnings }& \underline{2,397,064} \\ \text{ Total shareholders' equity }& \underline{\underline{\$1,364,445}} \end{array}$$

At what average price has Chipotle issued its common stock?

The following is the stockholders' equity section from Chipotle Mexican Grill, lnc.'s balance sheet (in thousands, except per share data).

$$\begin{array}{lr} & \text{December}\\ \text{Shareholders' Equity} & 31, 2017\\ \hline \text{ Preferred stock, \$0.01 par value, 600,000 shares authorized, no shares issued as of }& \$ \hspace{35pt} \text{\textemdash} \\ \quad \text{ December 31, 2017 }\\ \text{ Common stock, \$0.01 par value, 230,000 shares authorized, and 35,852 shares }\\ \quad \text{ issued as of December 31, 2017 }& 359 \\ \text{ Additional paid-in capital }& 1,305,090 \\ \text{ Treasury stock, at cost, 7,826 common shares at December 31, 2017 }& (2,334,409) \\ \text{ Accumulated other comprehensive income (loss) }& (3,659) \\ \text{ Retained earnings }& \underline{2,397,064} \\ \text{ Total shareholders' equity }& \underline{\underline{\$1,364,445}} \end{array}$$

Show the computation to derive the $359 thousand for common stock.

Potter Company has outstanding 15,000 shares of $50 par value, 8% preferred stock, and 50,000 shares of$5 par value common stock. During its first three years in business, it declared and paid no cash dividends in the first year, $280,000 in the second year, and$60,000 in the third year. c. How should each type of preferred dividends be treated in calculating EPS?

Potter Company has outstanding 15,000 shares of $50 par value, 8% preferred stock, and 50,000 shares of$5 par value common stock. During its first three years in business, it declared and paid no cash dividends in the first year, $280,000 in the second year, and$60,000 in the third year. b. If the preferred stock is noncumulative, determine the total amount of cash dividends paid to each class of stock in each of the three years.

Potter Company has outstanding 15,000 shares of $50 par value, 8% preferred stock, and 50,000 shares of$5 par value common stock. During its first three years in business, it declared and paid no cash dividends in the first year, $280,000 in the second year, and$60,000 in the third year. a. If the preferred stock is cumulative, determine the total amount of cash dividends paid to each class of stock in each of the three years.

Soliman Corporation began the year 2018 with 25,000 shares of common stock and 5,000 shares of convertible preferred stock outstanding. On May I, an additional 9,000 shares of common stock were issued. On July I, 6,000 shares of common stock were acquired for the treasury. On September 1, the 6,000 treasury shares of common stock were reissued. The preferred stock has a $4 per-share dividend rate, and each share may be converted into two shares of common stock. Soliman Corporation's 2018 net income is$230,000. c. If the preferred stock were not convertible, Soliman Corporation would have a simple capital structure. How would this change Soliman's earnings per share presentation?

Soliman Corporation began the year 2018 with 25,000 shares of common stock and 5,000 shares of convertible preferred stock outstanding. On May I, an additional 9,000 shares of common stock were issued. On July I, 6,000 shares of common stock were acquired for the treasury. On September 1, the 6,000 treasury shares of common stock were reissued. The preferred stock has a $4 per-share dividend rate, and each share may be converted into two shares of common stock. Soliman Corporation's 2018 net income is$230,000. b. Compute diluted earnings per share for 2018.

Soliman Corporation began the year 2018 with 25,000 shares of common stock and 5,000 shares of convertible preferred stock outstanding. On May I, an additional 9,000 shares of common stock were issued. On July I, 6,000 shares of common stock were acquired for the treasury. On September 1, the 6,000 treasury shares of common stock were reissued. The preferred stock has a $4 per-share dividend rate, and each share may be converted into two shares of common stock. Soliman Corporation's 2018 net income is$230,000. a. Compute earnings per share for 2018.