**Dividend Distribution Analysis for Lightfoot Inc.**Lightfoot Inc., a software development firm, has stock outstanding as follows: 20,000 shares of cumulative preferred 4% stock at $25 par value, and 25,000 shares of common stock at $50 par value. During its first four years of operations, the following amounts were distributed as dividends:- First year: $7,600- Second year: $12,600- Third year: $60,550- Fourth year: $90,500**Objective:**Calculate the dividend per share on each class of stock for each of the four years. Round all answers to two decimal places. If no dividends are paid in a given year, leave it blank.**Dividend Distribution Table:**| | 1st Year | 2nd Year | 3rd Year | 4th Year ||---------------|----------|----------|----------|----------|| **Preferred stock (dividend per share)** | $ | $ | $ | $ || **Common stock (dividend per share)** | $ | $ | $ | $ |**Instructions for Calculation:**1. **Identify Preferred Stock Dividend Requirement:** - Calculate the annual dividend requirement for cumulative preferred stock: 20,000 shares * 4% * $25 par value per share.2. **Distribute Dividends to Preferred and Common Stock:** - For each year, allocate the dividend to preferred stock first. - Any remaining amount after the preferred stock dividend is satisfied should be allocated to common stock.**Note:** - If the dividend provided in a year is less than the preferred stock requirement, the cumulative requirement will carry over to the subsequent year.- The dividend per share for each class of stock needs to be computed based on the total distributed amount and the number of shares outstanding.This example demonstrates how to perform dividend calculations and allocation for different classes of stocks in a company over multiple years.

Dividend: It is the distribution of profit earned by a company its common stock shareholders. In…

Lightfoot Inc., a software development firm, has stock outstanding as follows: 20,000 shares of cumulative preferred 4% stock, $25 par, and 25,000 shares of $50 par common. During its first four years of operations, the following amounts were distributed as dividends: first year, $7,600; second year, $12,600; third year, $60,550; fourth year, $90,500. Calculate the dividend per share on each class of stock for each of the four years. Round all answers to two decimal places. If no dividends are paid in a given year, leave blank. 1st Year 2nd Year 3rd Year 4th Year Preferred stock (dividend per share) Common stock (dividend per share)

Lightfoot Inc., a software development firm, has stock outstanding as follows: 20,000 shares of cumulative preferred 4% stock, $25 par, and 25,000 shares of $50 par common. During its first four years of operations, the following amounts were distributed as dividends: first year, $7,600; second year, $12,600; third year, $60,550; fourth year, $90,500. Calculate the dividend per share on each class of stock for each of the four years. Round all answers to two decimal places. If no dividends are paid in a given year, leave blank. 1st Year 2nd Year 3rd Year 4th Year Preferred stock (dividend per share) Common stock (dividend per share)

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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