The equity sections from Quality First Group's 2016 and 2017 year-end balance sheets follow. 5 nts Stockholders' Equity (December 31, 2016) Common stock-$12 par value, 140,000 shares authorized, 60,000 shares issued and outstanding Paid-in capital in excess of par value, common stock Retained earnings Total stockholders' equity $ 720,000 108,000 590,000 $1,418,000 eBook Print eferences Stockholders' Equity (December 31, 2017) Common stock-$12 par value, 140,000 shares authorized, 68,800 shares issued, 5,000 shares in treasury Paid-in capital in excess of par value, common stock Retained earnings ($120,000 restricted by treasury stock) $ 825,600 231,200 1,060,000 2,116,800 (120.000) $ 1,996,800 Less cost of treasury stock Total stockholders' equity The following transactions and events affected its equity during year 2017 Jan. 5 Declared a $1.00 per share cash dividend, payable on January 10. Mar. 20 Purchased treasury stock for cash. Apr. 5 Declared a $1.00 per share cash dividend, payable on April 10. July 5 Declared a $1.00 per share cash dividend, payable on July 10. July 31 Declared a 16% stock dividend when the stock's market value was $26 per share. Aug. 14 Issued the stock dividend that was declared on July 31. raw 1 of 8 Next >

In december of 2004, the company you own entered into a 20-year contract with a grain supplier for daily deliveries of grain to its hot dog bun manufacturing facility. the contract called for "10,000 pounds of grain" to be delivered to the facility at the price of $100,000 per day. until february 2017, the supplier provided processed grain which could easily be used in your manufacturing process. however, no longer wanting to absorb the cost of having the grain processed, the supplier began delivering whole grain. the supplier is arguing that the contract does not specify the type of grain that would be supplied and that it has not breached the contract. your company is arguing that the supplier has an onsite processing plant and processed grain was implicit to the terms of the contract. over the remaining term of the contract, reshipping and having the grain processed would cost your company approximately $10,000,000, opposed to a cost of around $1,000,000 to the supplier. after speaking with in-house counsel, it was estimated that litigation would cost the company several million dollars and last for years. weighing the costs of litigation, along with possible ambiguity in the contract, what are three options you could take to resolve the dispute? which would be the best option for your business and why?