On January 1, 2019, Marigold Corp. had the following stockholders' equity accounts. Common Stock ($10 par value, 84,800 shares issued and outstanding) $848,000
Paid-in Capital in Excess of Par Value-Common Stock 218,000
Retained Earnings 569,000

During the year, the following transactions occurred.

Jan. 15 Declared a $1.12 cash dividend per share to stockholders of record on January 31, payable February 15.
Feb. 15 Paid the dividend declared in January.
Apr. 15 Declared a 10% stock dividend to stockholders of record on April 30, distributable May 15. On April 15, the market price of the stock was $16 per share.
May 15 Issued the shares for the stock dividend.
July 1 Announced a 2-for-1 stock split. The market price per share prior to the announcement was $14. (The new par value is $5.)
Dec. 1 Declared a $0.60 per share cash dividend to stockholders of record on December 15, payable January 10, 2020.
Dec. 31 Determined that net income for the year was $220,000.

Required:
a. Prepare the stockholdersâ equity section of the balance sheet at December 31.
b. Calculate the payout ratio and return on common stockholdersâ equity.