Changes in stockholders’ equity

Changes in stockholders’ equity

P4. Changes in stockholders’ equity Listed below are the equity sections of balance sheets for years 2008 and 2009 as reported by Mountain Air Ski Resorts, Inc. The overall value of stockholder’s equity has risen from $2,000,000 to $7,500,000. Use the statements to discover how and why this occurred.

Don't use plagiarized sources. Get Your Custom Essay on
Changes in stockholders’ equity
Just from $5/Page
Order Essay

Mountain Air Ski Resorts, Inc.

Balance Sheets (partial)

Stockholders’ equity20082009
Common stock ($1.00 par)
Authorized – 5,000,000
Outstanding – 1,500,000 shares in 2009$ 1,500,000
– 500,000 shares in 2008$ 500,000
Paid-in capital in excess of par500,0004,500,000
Retained earnings1,000,0001,500,000
Total stockholders’ equity$ 2,000,000$ 7,500,000

The company paid total dividends of $200,000 during fiscal 2009.

a. What was Mountain Air’s net income during fiscal 2009?

b. How many new shares did the corporation issue and sell during the year?

c. At what average price per share did the new stock sold during 2009 sell?

d. At what price per share did Mountain Air’s original 500,000 shares sell?

Place your order
(550 words)

Approximate price: $22

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more