Calgate Company had the following shares outstanding and retained earnings at the end of the current year:Preferred shares, 4% (par value $15; outstanding, 10,300 shares)Common shares (outstanding, 33,000 shares)Retained earningsThe board of directors is considering the distribution of a cash dividend to both groups of shareholders. No dividends were declaredduring the previous two years. Three independent cases are assumed:Case A: The preferred shares are non-cumulative; the total amount of dividends is $51,600.Case B: The preferred shares are cumulative; the total amount of dividends is $63,000.Case C: Same as case B, except the amount is $97,500.Required:1. Compute the amount of dividends, in total and per share, that would be payable to each class of shareholders for each case. (Round"Per share" to 2 decimal places.)Case A:TotalPer shareCase B:TotalPer share$ 154,500615,000296,000Case C:TotalPer sharePreferredSharesCommonShares 2. Assume that the company in Case C issued a 11 percent common stock dividend on the outstanding common shares. The marketvalue per share was $26. on the date of declaration. Complete the following comparative schedule for common shares only, includingexplanation of the differences. (Enter any decreases to account balances with a minus sign.)ItemAssetsLiabilitiesShareholders' equityAmount of Dollar Increase (Decrease)Cash Dividend-Case C Stock Dividend

Cumulative Preference Share: When a corporation goes into liquidation, cumulative preference shares…

Answered: Calgate Company had the following…

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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Nowell Incorporated had the following stock issued and outstanding at January 1, Year 2: 1. 106,000 shares of no-par common stock. 2.36,000 shares of $50 par, 5 percent, cumulative preferred stock. (Dividends are in arrears for one year, Year 1.) On March 8, Year 2, Nowell declared a $208,000 cash dividend to be paid March 31 to shareholders of record on March 20. Required What amount of dividends will be paid to the preferred shareholders versus the common shareholders? Total dividend declared Preferred arrearage Current preferred dividend Available for common Distributed to common Total Distributed to Shareholders Preferred Common
The outstanding capital stock of Metlock Corporation consists of 1,900 shares of $100 par value, 9% preferred, and 5,400 shares of $50 par value common. Assuming that the company has retained earnings of $84,500, all of which is to be paid out in dividends, and that preferred dividends were not paid during the 2 years preceding the current year, state how much each class of stock should receive under each of the following conditions. a. The preferred stock is noncumulative and nonparticipating. (Round answers to O decimal places, e.g. 38,487.) $ $ Preferred b. The preferred stock is cumulative and nonparticipating. (Round answers to O decimal places, e.g. 38,487.) $ Preferred $ Preferred $ Common c. The preferred stock is cumulative and participating. (Round the rate of participation to 4 decimal places, e.g.1.4278%. Round answers to O decimal places, e.g. 38,487.) $ Common Common
The outstanding share capital of KTI Corporation consists of 2,950 preferred shares and 7,000 common shayes for which $280,000 was received. The preferred shares carry a dividend of $7 per share and have $100 stated value. Instructions: Assuming that the company has retained earnings of $95,000 that is to be entirely paid out in dividends and that preferred dividends were not paid during the two years preceding the current year, state how much each class of shares should receive under each of the following conditions. a. The preferred shares are cumulative and non-participating. b. The preferred shares are cumulative and participating. Do not round intermediate calculations but round answer to nearest dollar.
Nowell Inc. had the following stock issued and outstanding as of January 1, Year 2: 1. 150,000 shares of no-par common stock. 2. 30,000 shares of $50 par, 4 percent, cumulative preferred stock. (Dividends are in arrears for one year, Year 1.) On March 8, Year 2, Nowell declared a $175,000 cash dividend to be paid March 31 to shareholders of record on March 20. a. What amount of dividends will be paid to the preferred shareholders versus the common shareholders?
The outstanding capital stock of Oriole Corporation consists of 1,900 shares of $100 par value, 8% preferred, and 4,700 shares of $50 par value common. Assuming that the company has retained earnings of $89,500, all of which is to be paid out in dividends, and that preferred dividends were not paid during the 2 years preceding the current year, state how much each class of stock should receive under each of the following conditions. a. The preferred stock is noncumulative and nonparticipating. (Round answers to O decimal places, e.g. 38,487.) Preferred b. The preferred stock is cumulative and nonparticipating. (Round answers to O decimal places, e.g. 38,487.) EA Preferred Common c. The preferred stock is cumulative and participating. (Round the rate of participation to 4 decimal places, e.g.1.4278%. Round answers to O decimal places, e.g. 38,487.) Preferred LA Common Common
Just prior to the end of the fiscal year, Biofuel Corporation reported the following information: Common stock ($0.20 par value) Additional paid-in capital $ 70,000 2,000,000 900,000 Retained earnings Treasury stock Cash flows from financing activities Required: Complete the table below for each of the three following independent cases: Note: Round "Par per share" answers to 2 decimal places. Case 1: The board of directors declared a cash dividend of $0.02 per share. Case 2: The board of directors declared and issued a 100 percent stock dividend when the stock was selling at $12 per share. Case 3: The board of directors announced 2-for-1 stock split. The market price prior to the split was $20 per share. Items After Stock Dividend Common stock account Par value per share Shares outstanding Additional paid-in capital Retained earnings Total stockholders' equity Cash flows from financing activities Before Any Dividends $ $ $ $ $ 0 24,000 70,000 $ 0.2 2,000,000 900,000 24,000 After Cash…
When Crossett Corporation was organized in January Year 1, it immediately issued 4,700 shares of $48 par, 8 percent, cumulative preferred stock and 12,000 shares of $8 par common stock. Its earnings history is as follows: Year 1, net loss of $12,700; Year 2, net income of $58,700; Year 3, net income of $119,700. The corporation did not pay a dividend in Year 1. b. Assume that the board of directors declares a $55,596 cash dividend at the end of Year 2 (remember that the Year 1 and Year 2 preferred dividends are due). How will the dividend be divided between the preferred and common stockholders? (Amounts to be deducted should be indicated with minus sign.)
PLEASE ANSWER WITHOUT IMAGE
For the year 20X1, Trinity Ltd., a company based in Barrie, had net income of $4,000,000 and there were no discontinued operations. During 20X1, the company had two classes of shares outstanding: Class A preferred shares: 1,200 shares issued and outstanding at the beginning of the year; quarterly dividend rate of $100 per share; cumulative; each share is convertible into 50 shares of Class B common. Class B common shares: 150,000 shares issued and outstanding at the beginning of the year. Also note the following: 700 shares of Class A were converted into Class B shares on April 1 20X1; dividends for the first quarter of the year were paid on March 31 20X1. Options to issue 8,000 common shares to senior management personnel for $4 per share were outstanding during the entire year. The average share price during the year was $12. Required: (a) Determine the weighted-average number of shares outstanding during 20X1. (b) Determine basic EPS. (c) Determine diluted EPS.

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