finance-Theta Products Company reported the following stockholders’ equity on its balance sheet.

QUESTION

#24) Theta Products Company reported the following stockholders’ equity on its balance sheet.Stockholders’ Equity (Dollars and shares in millions) December 31, 2015 2014Convertible preferred stock-$1.50 par value; authorized 55 shares; issued and outstanding:2015 and 2014-8 and 16 shares, respectively $12 $24Common stock-$4 per share par value; authorized 1,200 shares;issued: 2015 and 2014 -500 and 400shares, respectively 2,000 1,600Additional paid-in capital 2,500 1,710Retained earnings 6,200 5,010Treasury stock, common-at cost 2015-46 shares; 2014-16 shares (1,104) (364)Total stockholders’ equity 9,608 7,992Total liabilities and stockholders’ equity $50,233 $46,742Requirements1. What caused Theta’s preferred stock to decrease during 2015? cite all possible causesPreferred stockholders could have__________(Converted or retired) their preferred stock to _______________(Common stock, or Stock dividends, or treasury stock). The second possibility is that the company __________________ ( retired, or sold or split) preferred stock shares.2.What caused Theta’s common stock to increase during 2015? Identify all possible causes.3.How many shares of Theta’s common stock were outstanding at Dec 31,2015?4.Theta’s net income during 2015 was $1,375 million. How much were Theta’s dividends during the year?5. During 2015, Theta’s sold no treasury stock. What average price per share did Theta pay for the stock that the company purchased during the year?

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