Karin, Inc. has 5,000 shares of 6%, $200 par value, cumulativepreferred stock and 100,000 shares of $2 par value common stockoutstanding. There were no dividends declared in 2015. The board ofdirectors declared and paid dividends of $100,000 each in 2016 and2017.What is the amount of dividends received by the commonstockholders in 2017?A) $80,000B) $40,000C) $20,000D) $60,000Listen

Cumulative preferred stock :— It is one of the type of preference share in which annual dividend is…

Answered: Karin, Inc. has 5,000 shares of 6%,…

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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The shareholders' equity of Tru Corporation includes $600,000 of $1 par common stock and $1,200,000 par value of 6% cumulative preferred stock. The board of directors of Tru declared cash dividends of $150,000 in 2016 after paying $60,000 cash dividends in each of 2015 and 2014. Required: What is the amount of dividends common shareholders will receive in 2016? Show your computations. And show 2014, 2015 and 2016.
The shareholders’ equity of MLS Enterprises includes $200 million of no par common stock and $400 millionof 6% cumulative preferred stock. The board of directors of MLS declared cash dividends of $50 million in 2018after paying $20 million cash dividends in both 2017 and 2016. What is the amount of dividends common shareholders will receive in 2018?
Chauncey Corporation began business on June 30, 2016. At that time, it issued 20,000 shares of $50 par value, six percent, cumulative preferred stock and 90,000 shares of $10 par value common stock. Through the end of 2018, there had been no change in the number of preferred and common shares outstanding. Assume that Chauncey declared dividends of $69,000 in 2016, $0 in 2017, and $354,000 in 2018. How would I Calculate the total dividends and the dividends per share paid to each class of stock in 2016, 2017, and 2018. Round to two decimal places.
At December 31, 2017 and 2018, Funk and Noble corporation had outstanding 760 million shares of common stock and 7 million shares of 4%, 100 par value cumulative perferred stock. No dividentds were declared on either the preferred or common stock in 2017 or 2018. Net income for 2018 was 788 million. the income tax rate is 40 percent. Calculate earning per share for the year ended December 31, 2018?
Crystal Arts, Inc., had earnings of $291,600 for 2016. The company had 30,000 shares of common stock outstanding during the year. In addition, the company issued 1,800 shares of $150 par value preferred stock on January 3, 2016. The preferred stock has a dividend of $7 per share. There were no transactions in either common or preferred stock during 2016. Determine the basic earnings per share for Crystal Arts. Round answer to two decimal places.
Rachel’s Designs has 1,100 shares of 7%, $50 par value cumulative preferred stock issued at the beginning of 2016. All remaining shares are common stock. Due to cash flow difficulties, the company was not able to pay dividends in 2016 or 2017. The company plans to pay total dividends of $13,000 in 2018. How much of the $13,000 dividend will be paid to preferred stockholders and how much will be paid to common stockholders?
Ayayai Corp. has 4,200 shares of 8%, $100 par value preferred stock outstanding at December 31, 2017. At December 31, 2017, the company declared a $128,000 cash dividend.Determine the dividend paid to preferred stockholders and common stockholders under each of the following scenarios.1. The preferred stock is noncumulative, and the company has not missed any dividends in previous years. The dividend paid to preferred stockholders $ The dividend paid to common stockholders $ 2. The preferred stock is noncumulative, and the company did not pay a dividend in each of the two previous years. The dividend paid to preferred stockholders $ The dividend paid to common stockholders $ 3. The preferred stock is cumulative, and the company did not pay a dividend in each of the two previous years. The dividend paid to preferred stockholders $ The dividend paid to common stockholders $
Hound, Inc. has the following stock issued as of December 2015: 7% Preferred Stock, $100 par, 10,000 shares issued and outstanding Common Stock, $5 par, 50,000 shares issued and outstanding The preferred stock dividend is non-cumulative. Dividends were paid in 2013, but were not paid during 2014. On December 15, 2015, Hound declares dividends of $210,000. How much of this dividend will be distributed to Preferred Stock?
Rahul
In 2017 Pedroni Corporation reported net income of $1,000,000. It declared and paid preferred stock a dividend of $250,000. During 2017, Pedroni had a weighted average of 190,000 shares outstanding. Compute Pedroni's Earnings Per Share.
On December 31, 2017, Dow Corporation had 600,000 shares of common stock and 300,000 shares of 8%, noncumulative, nonconvertible preferred stock issued and outstanding. Dow issued a 4% common stock dividend on May 15 and paid cash dividends of $400,000 and $75,000 to common and preferred shareholders, respectively, on December 15, 2018. On February 28, 2018, Dow sold 60,000 common shares. In keeping with its long-term share repurchase plan, 2,000 shares were retired on July 1. Dow’s net income for the year ended December 31, 2018, was $2,100,000. The income tax rate is 40%. Also, as a part of a 2017 agreement for the acquisition of Merrill Cable Company, another 23,000 shares (already adjusted for the stock dividend) are to be issued to former Merrill shareholders on December 31, 2019, if Merrill’s 2019 net income is at least $500,000. In 2018, Merrill’s net income was $630,000. As part of an incentive compensation plan, Dow granted incentive stock options to division managers at…
Luther Inc., has 4,000 shares of 5%, $50 par value, cumulative preferred stock and 100,000 shares of $1 par value common stock outstanding at December 31, 2018, and December 31, 2017. The board of directors declared and paid an $8,000 dividend in 2017. In 2018, $40,000 of dividends are declared and paid. What are the dividends received by the preferred stockholders in 2018? A. $28,000 B. $12,000 C. $20,000 D. $10,000

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