Respond to one or more question(s) from each of the three categories below:
Category: Capital stock
1. Describe the composition of your corporation’s contributed capital. (Hint: contributed capital includes common and preferred stock plus any paid in capital in excess of par or stated value)
2. Describe any other accounts reported in the Stockholder’s Equity section of the Balance Sheet.
3. Discuss Treasury Stock transactions during the current year, if any.
Category: Retained Earnings
Use the following equation and show how the Retained Earnings account has changed during the year. (Hint: the beginning balance of Retained Earnings is also equal to the ending balance of Retained Earnings in the prior year)
Retained earnings, beginning balance
+ Net Income
= Retained earnings, ending balance
Note: if the Statement of Stockholder’s Equity shows other accounts in the computation of Retained Earnings, please ask the professor for guidance
Calculate the following ratios for the most current year and comment on the results of your ratio
â€¢ Return on stockholder’s equity
â€¢ Earnings per share