Assume the following shares are outstanding for Hernandez Inc. on Dec. 31, 2020: • 40,000 shares of preferred stock outstanding, 10%, $10 par value, CUMULATIVE. • 80,000 shares of common stock outstanding, $0.01 par value. Ramirez did not have dividends in arrears as of January 1, 2018, but did not pay any dividends in 2018 or 2019. Total dividends of $300,000 are declared and paid in 2020. Common shareholders are entitled to _ of the dividends paid in 2020. $260,000 $180,000 $120,000 $40,000

Assume the following shares are outstanding for Hernandez Inc. on Dec. 31, 2020: • 40,000 shares of preferred stock outstanding, 10%, $10 par value, CUMULATIVE. • 80,000 shares of common stock outstanding, $0.01 par value. Ramirez did not have dividends in arrears as of January 1, 2018, but did not pay any dividends in 2018 or 2019. Total dividends of $300,000 are declared and paid in 2020. Common shareholders are entitled to _ of the dividends paid in 2020. $260,000 $180,000 $120,000 $40,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Assume the following shares are outstanding for Hernandez Inc. on Dec. 31, 2020: • 40,000 shares of preferred stock outstanding, 10%, $10 par value, CUMULATIVE. • 80,000 shares of common stock outstanding, $0.01 par value. Ramirez did not have dividends in arrears as of January 1, 2018, but did not pay any dividends in 2018 or 2019. Total dividends of $300,000 are declared and paid in 2020. Common shareholders are entitled to of the dividends paid in 2020. $260,000 O $180,000 $120,000 $40,000
The following information pertains to Maxwell Corporation. Assume that all balance sheet amounts represent both average and ending figures. Maxwell Corporation had 6,000 shares of common stock issued and outstanding. The market price of Maxwell common stock on December 31, 2019, was $20. Jasmin paid dividends of $0.90 per share during 2019. What is the debt to equity ratio for this corporation? Round your answer to 1 decimal place. Maxwell Corporation Partial Balance Sheet December 31, 2019 Liabilities and Stockholders' Equity Current liabilities Long-term liabilities Stockholders' equity Total liabilities and stockholders' equity Maxwell Corporation Income Statement For the Year Ended December 31, 2019 Net sales Cost of goods sold Gross margin Operating expenses Income before income taxes Income taxes expense Net income $ 60,000 90,000 150,000 $300,000 $80,000 45,000 $35,000 15,000 $20,000 5,000 $15.000
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