Ex8: A company was organized in January 2016 and has 15,000 shares of $12 par value, 20%, nonparticipating preferred stock outstanding and 50,000 shares of $7 par value common stock outstanding. It has declared and paid cash dividends each year as shown below. Calculate the total dividends distributed to each class of stockholder under each of the assumptions given. 2016 2017 $20,000 $30,000 $60,000 2018 Required: Complete the amount of total dividends allocated to each class of stock during 2016-2018. Cumulative: Year Preferred Common 2016 2017 2018. Non-Cumulative: Year Preferred Common 2016 2017 2018 To calculate the total dividends distributed to each class of stockholder under each assumption, we need to consider whether the preferred stock is cumulative or non-cumulative. Here are the calculations for both scenarios: 1. Cumulative Preferred Stock: Year 2016:
Ex8: A company was organized in January 2016 and has 15,000 shares of $12 par value, 20%, nonparticipating preferred stock outstanding and 50,000 shares of $7 par value common stock outstanding. It has declared and paid cash dividends each year as shown below. Calculate the total dividends distributed to each class of stockholder under each of the assumptions given. 2016 2017 $20,000 $30,000 $60,000 2018 Required: Complete the amount of total dividends allocated to each class of stock during 2016-2018. Cumulative: Year Preferred Common 2016 2017 2018. Non-Cumulative: Year Preferred Common 2016 2017 2018 To calculate the total dividends distributed to each class of stockholder under each assumption, we need to consider whether the preferred stock is cumulative or non-cumulative. Here are the calculations for both scenarios: 1. Cumulative Preferred Stock: Year 2016:
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question

Transcribed Image Text:Ex8: A company was organized in January 2016 and has 15,000 shares of $12 par value,
20%, nonparticipating preferred stock outstanding and 50,000 shares of $7 par value
common stock outstanding. It has declared and paid cash dividends each year as
shown below. Calculate the total dividends distributed to each class of stockholder
under each of the assumptions given.
2016
2017
$20,000
$30,000
$60,000
2018
Required: Complete the amount of total dividends allocated to each class of stock
during 2016-2018.
Cumulative:
Year
Preferred
Common
2016
2017
2018.
Non-Cumulative:
Year
Preferred
Common
2016
2017
2018
To calculate the total dividends distributed to each class of stockholder under
each assumption, we need to consider whether the preferred stock is
cumulative or non-cumulative. Here are the calculations for both scenarios:
1. Cumulative Preferred Stock:
Year 2016:
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