### Dividends Per ShareWindborn Company has 10,000 shares of cumulative preferred 1% stock, $150 par, and 50,000 shares of $30 par common stock. The following amounts were distributed as dividends:- **20Y1**: $37,500- **20Y2**: $12,000- **20Y3**: $45,000Determine the dividends per share for preferred and common stock for each year. Round all answers to two decimal places. If an answer is zero, enter '0'.| Year | Preferred Stock (dividends per share) | Common Stock (dividends per share) ||:----:|:-------------------------------------:|:----------------------------------:|| 20Y1 | [input box] | [input box] || 20Y2 | [input box] | [input box] || 20Y3 | [input box] | [input box] |**Explanation:**- **Preferred Stock**: Cumulative preferred stock means that if any dividends are omitted, they must be paid out before any dividends can be paid to common stockholders in future years.- **Common Stock**: The dividend payments to common stockholders occur only after the preferred dividends are fully paid.### Steps to Calculate:1. **Determine total preferred dividends per year**: - Preferred stock dividend = 1% of $150 par * 10,000 shares. - Annual preferred dividend: 0.01 * 150 * 10,000 = $15,000.2. **Distribute dividends year by year**: - **20Y1**: Pay full preferred dividends and calculate the remainder for common stock. - **20Y2**: Pay any outstanding preferred dividends from 20Y1 first, and then the current year's preferred dividends before calculating the common stock dividends. - **20Y3**: Carry over any unpaid preferred dividends from prior years and then distribute the remaining properly.### Example Calculation:For each year, we distribute dividends according to the sequence: unpaid preferred dividends → current preferred dividends → common stock dividends.**Graphical Elements**: This section of the webpage might feature interactive input boxes or auto-calculating fields for students to enter values and automatically see results based on the provided data and their calculations.

Preferred Dividend :— It is calculated by multiplying face value of preferred stock with dividend…

Answered: Dividends Per Share Windborn Company…

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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Sandpiper Company has 20,000 shares of cumulative preferred 3% stock, $50 par and 50,000 shares of $15 par common stock. The following amounts were distributed as dividends: 20Y1 $60,000 20Y2 24,000 20Y3 90,000 Determine the dividends per share for preferred and common stock for each year. Round all answers to two decimal places. If an answer is zero, enter '0'. Preferred Stock(dividends per share) Common Stock(dividends per share) 20Y1 fill in the blank fill in the blank 20Y2 fill in the blank fill in the blank 20Y3 fill in the blank fill in the blank
A company had stock outstanding as follows during each of its first three years of operations: 3,000 shares of 10%, $100 par, cumulative preferred stock and 33,000 shares of $10 par common stock. The amounts distributed as dividends follow. Determine the total and per-share dividends for each class of stock for each year by completing the schedule. Round dividends per share to the nearest cent. If your answer is zero, please enter "0". Preferred Common Year Dividends Total Per Share Total Per Share 1 $22,500 $fill in the blank 1 $fill in the blank 2 $fill in the blank 3 $fill in the blank 4 2 30,000 $fill in the blank 5 $fill in the blank 6 $fill in the blank 7 $fill in the blank 8 3 43,230 $fill in the blank 9 $fill in the blank 10 $fill in the blank 11 $fill in the blank 12
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Windborn Company has 20,000 shares of cumulative preferred 2% stock, $100 par and 50,000 shares of $20 par common stock. The following amounts were distributed as dividends: 20Y1 $80,000 20Y2 20,000 20Y3 120,000 Determine the dividends per share for preferred and common stock for each year. Round all answers to two decimal places. If an answer is zero, enter '0'.

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