L8L8L
Jan 20, 2009, 03:57 AM
I'm trying to figure out the value of retained earnings.
I was given the following table:
common stock ($1 par value) = $8,000
capital surplus = 156,000
Retained earnings = 510,000
Total owner's equity = $674,000
The question then moves on to ask how all of the above equity accounts will change if the current stock's price is $24 per share and a 9% stock dividend is declared.
I already figured out the following:
Number of new shres issued = 720
common stock ($1 par value) = $8,720
capital surplus = 172,560
But I still need the RETAINED EARNINGS.
How do I compute it?
Thanks!
I was given the following table:
common stock ($1 par value) = $8,000
capital surplus = 156,000
Retained earnings = 510,000
Total owner's equity = $674,000
The question then moves on to ask how all of the above equity accounts will change if the current stock's price is $24 per share and a 9% stock dividend is declared.
I already figured out the following:
Number of new shres issued = 720
common stock ($1 par value) = $8,720
capital surplus = 172,560
But I still need the RETAINED EARNINGS.
How do I compute it?
Thanks!