a. Hoyle has issued 100,000 shares of $5 common stock. It was authorized 500,000 shares. The paid-in capital in excess of on the common stock is $263,000. The has reacquired 7,000 shares at a cost of $46,000 and is currently holding those shares. It also had accumulated other comprehensive income of $67,000. The also has 2,000 shares issued and outstanding of 9%, $100 preferred stock. It was authorized 10,000 shares. The paid-in capital in excess of on the preferred stock is $23,000. Retained earnings is $372,000. Prepare the stockholders’ equity section of the balance sheet.
b. On January 1, 2020, Vahsholtz purchased 5,000 shares of treasury stock. Other information regarding Vahsholtz is provided as follows.
Compute (a) Return on common stockholders’ equity for each year. (b) Discuss the changes in each.
