PB11-4 (Algo) Comparing Stock and Cash Dividends [LO 11-2, LO 11-3, LO 11-4] Part 3Carlos Company had the following stock outstanding and Retained Earnings at December 31, 2021: Common Stock (par $1; issued and outstanding, 420,000 shares)$ 420,000Preferred Stock, 7% (par $10; issued and outstanding, 18,300 shares)183,000Retained Earnings959,000On December 31, 2021, the board of directors is considering the distribution of a cash dividend to the common and preferred stockholders. No dividends were declared during 2019 or 2020. Three independent cases are assumed: Case A:The preferred stock is noncumulative; the total amount of 2021 dividends would be $22,000.Case B:The preferred stock is cumulative; the total amount of 2021 dividends would be $17,000. Dividends were not in arrears prior to 2019.Case C:Same as Case B, except the amount is $60,000.Required:1-a. Compute the amount of 2021 dividends, in total, that would be payable to each class of stockholders if dividends were declared as described in each case.1-b. Compute the amount of 2021 dividends per share payable to each class of stockholders for each case. Compute the amount of 2021 dividends, in total, that would be payable to each class of stockholders if dividends weredeclared as described in each case.Case ACase BCase CPreferredCommonTotal Compute the amount of 2021 dividends per share payable to each class of stockholders for each case. (Round your answers to2 decimal places.)Case ACase BCase CPreferredCommon

Preferred shares dividend percentage = 7% Number of Preferred shares = 18300 shares Number of Common…

Answered: PB11-4 (Algo) Comparing Stock and Cash…

FINANCIAL ACCOUNTING

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ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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PB11-4 (Algo) Comparing Stock and Cash Dividends [LO 11-2, LO 11-3, LO 11-4] Part 3

Carlos Company had the following stock outstanding and Retained Earnings at December 31, 2021:

Common Stock (par $1; issued and outstanding, 420,000 shares)	$ 420,000
Preferred Stock, 7% (par $10; issued and outstanding, 18,300 shares)	183,000
Retained Earnings	959,000

On December 31, 2021, the board of directors is considering the distribution of a cash dividend to the common and preferred stockholders. No dividends were declared during 2019 or 2020. Three independent cases are assumed:

Case A:	The preferred stock is noncumulative; the total amount of 2021 dividends would be $22,000.
Case B:	The preferred stock is cumulative; the total amount of 2021 dividends would be $17,000. Dividends were not in arrears prior to 2019.
Case C:	Same as Case B, except the amount is $60,000.

Required:

1-a. Compute the amount of 2021 dividends, in total, that would be payable to each class of stockholders if dividends were declared as described in each case.
1-b. Compute the amount of 2021 dividends per share payable to each class of stockholders for each case.

Compute the amount of 2021 dividends, in total, that would be payable to each class of stockholders if dividends were
declared as described in each case.
Case A
Case B
Case C
Preferred
Common
Total

Compute the amount of 2021 dividends per share payable to each class of stockholders for each case. (Round your answers to
2 decimal places.)
Case A
Case B
Case C
Preferred
Common

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