Garthock, inc. is a public company whose shares are traded in the over-the-counter market. at december 31, 2015, the company had 6 million authorized shares of $5 par-value common stock, 2 million shares of which were issued and outstanding. common stock $10,000,000 additional paid-in capital 7,500,000 retained earnings 3,250,000 transactions during 2016 and other information relating to garthock's equity accounts were as follows: -on january 5, the company issued 100,000 shares of $50 parvalue, 9% cumulative, convertible preferred stock at $54 per share. each share of preferred stock is convertible, at the option of the holder, into two shares of common stock. garthock had 250,000 authorized chare of preferred stock. the preferred stock has a liquidation value of $55 per share. - on february 1, the company reacquired 20,000 shares of its common stock $16 per share. garthock uses the cost method to account for treasury stock, -on april 30, the company had completed an additional public offering of 500,000 shares of its $5 parvalue common stock. the stock was sold to the public at $12 per share, net of offering cost. - on june 17, garthock declared cash dividend of $1 per share of common stock, payable on july 10, 2016, to shareholders of record on july 1, 2016. -november 6, the company sold 10,000 shares of treasury stock for $21 per share -on december 7, the company declared the yearly cash dividend on preffered stock, payable on january 7,2017, to shareholders of record on dec 31,2016. - on january 17,2017 before the books were closed for 2016. mart became aware that the ending inventories at dec 31, 2015, were overstated by $200,000. the taxrate applicable to 2015 net income wad 30%. the appropriate correcting entry was recorded the same day. -after correction of the beginning inventories, net income for 2016 was $2,250,000 required: prepare a statement of shareholders be sure to calculate for the prior period adjustement