Blue Spruce Corp. has 5,000 preferred shares outstanding ($2.00 dividend), which were issued for $130,000, and 40,000 common shares, which were issued for $600,000. The following schedule shows the amount of dividends paid out over the past four years. Allocate the dividends to each type of share under assumptions (a) and (b). Express your answers in per-share amounts and using the format that is shown. (Round intermediate calculations to 5 decimal places, eg. 0.15647 and final answers to 2 decimal places, e.g. 52 Do not leave any answer field blank. Enter O for amounts) Assumptions (a) (b) Preferred, non-cumulative, and non-participating Year Paid-out Preferred Common Preferred Preferred, cumulative, and fully participating 2020 $8.000 $ 160 $ 0 $ 16 2021 $24,000 $ 200 $ 0.35 $ 24 $ 2022 $60,000 $ 200 $ 125 2023 $126,000 $ 200 2.90 $ 200 Common 125 2.90
Blue Spruce Corp. has 5,000 preferred shares outstanding ($2.00 dividend), which were issued for $130,000, and 40,000 common shares, which were issued for $600,000. The following schedule shows the amount of dividends paid out over the past four years. Allocate the dividends to each type of share under assumptions (a) and (b). Express your answers in per-share amounts and using the format that is shown. (Round intermediate calculations to 5 decimal places, eg. 0.15647 and final answers to 2 decimal places, e.g. 52 Do not leave any answer field blank. Enter O for amounts) Assumptions (a) (b) Preferred, non-cumulative, and non-participating Year Paid-out Preferred Common Preferred Preferred, cumulative, and fully participating 2020 $8.000 $ 160 $ 0 $ 16 2021 $24,000 $ 200 $ 0.35 $ 24 $ 2022 $60,000 $ 200 $ 125 2023 $126,000 $ 200 2.90 $ 200 Common 125 2.90
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Your answer is partially correct.
Blue Spruce Corp. has 5,000 preferred shares outstanding ($2.00 dividend), which were issued for $130,000, and 40,000 common shares, which were issued for $600,000.
The following schedule shows the amount of dividends paid out over the past four years. Allocate the dividends to each type of share under assumptions (a) and (b). Express your answers in per-share amounts and using the format that is shown. (Round intermediate calculations to 5 decimal places, e.g. 0.15647 and final answers to 2 decimal places, e.g. 52.75.
Do not leave any answer field blank. Enter O for amounts.)
(a)
Preferred, non-cumulative,
and non-participating
Assumptions
(b)
Preferred, cumulative,
and fully participating
Preferred
Common
Year
Paid-out
Preferred
2020
$8,000
Common
1.60
$
$
1.6
$
2021
$24,000
$
2.00
$
0.35
$
2.4
$
2022
$60,000
$
2.00
$
1.25
$
0
$
1.25
2023
$126,000 $
2.00
$
2.90
$
2.00
$
2.90
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