Q 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 1. 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 - Dividends = 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] Category: Analysis 1. Calculate the following ratios for the most current year, and interpret/comment on what those results of your ratio analysis indicate about the financial aspect measured. Show your calculations. a. Return on stockholder's equity b. Earnings per share
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