For the last three years, Squarepants Corporation paid the following cash dividends: 2016 - P 250,000; 2017 - P 350,000; 2018 - P 650,000 During the last three years, capital accounts show the following number of shares outstanding: 12% Preference Shares, P 100 par Ordinary Shares, P 10 par 10,000 shares 50,000 shares Dividends are in arrears for two years at the beginning of 2016. Required: Compute the amount of dividends that will be paid in total and per share on preference shares and ordinary shares for each year under the following independent assumptions: 1. Preference shares are non-cumulative and non-participating 2. Preference shares are cumulative and non-participating 3. Preference shares are non-cumulative but participating
For the last three years, Squarepants Corporation paid the following cash dividends: 2016 - P 250,000; 2017 - P 350,000; 2018 - P 650,000 During the last three years, capital accounts show the following number of shares outstanding: 12% Preference Shares, P 100 par Ordinary Shares, P 10 par 10,000 shares 50,000 shares Dividends are in arrears for two years at the beginning of 2016. Required: Compute the amount of dividends that will be paid in total and per share on preference shares and ordinary shares for each year under the following independent assumptions: 1. Preference shares are non-cumulative and non-participating 2. Preference shares are cumulative and non-participating 3. Preference shares are non-cumulative but participating
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:For the last three years, Squarepants Corporation paid the following cash dividends:
2016 - P 250,000; 2017 - P 350,000; 2018 –P 650,000
During the last three years, capital accounts show the following number of shares outstanding:
A.
12% Preference Shares, P 100 par
Ordinary Shares, P 10 par
10,000 shares
50,000 shares
Dividends are in arrears for two years at the beginning of 2016.
Required: Compute the amount of dividends that will be paid in total and per share on preference shares and
ordinary shares for each year under the following independent assumptions:
Preference shares are non-cumulative and non-participating
Preference shares are cumulative and non-participating
Preference shares are non-cumulative but participating
Preference shares are cumulative and participating
Preference shares are non-cumulative and but participating up to 6%.
1.
2.
3.
4.
5.
NOTE: To compute dividends per share = Total dividends/number of shares issued and outstanding
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