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) $69,000
Additional paid-in capital 19,000
Retained earnings 39,000
Common equity 127,000
Treasury stock (4,000 shares) 13,000
Net common equity $114,000
Required:
a. How many shares are issued?
b. How many are outstanding?
c. How many more shares can be issued without the approval of shareholders?
