share capital
Question
The authorized share capital of the Alfred Cake Company is 120,000 shares. The equity is currently shown in the
company’s books as follows:
| Common stock ($2 par value) | $ | 80,000 |
| Additional paid-in capital | 30,000 | |
| Retained earnings | 50,000 | |
| Common equity | $ | 160,000 |
| Treasury stock (2,000 shares) | 24,000 | |
| Net common equity | $ | 136,000 |
| a. | How many shares are issued? |
| Number of shares issued |
| b. | How many shares are outstanding? |
| Outstanding shares |
| c. | How many more shares can be issued without the approval of shareholders? |
| Number of shares issued |
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