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Stern Company has 100,000 shares of common stock and 20,000 shares of preferred stock outstanding. There was no change in the number of common or preferred shares outstanding during the year. Preferred stockholders received dividends totaling $140,000 during the year. Common stockholders received dividends totaling $210,000. If the dividend payout ratio was 70%, then the net income was:

Stern Company has 100,000 shares of common stock and 20,000 shares of preferred stock outstanding. There was no change in the number of common or preferred shares outstanding during the year. Preferred stockholders received dividends totaling $140,000 during the year. Common stockholders received dividends totaling $210,000. If the dividend payout ratio was 70%, then the net income was:

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Stern Company has 100,000 shares of common stock and 20,000 shares of preferred stock outstanding. There was no change in the number of common or preferred shares outstanding during the year. Preferred stockholders received dividends totaling $140,000 during the year. Common stockholders received dividends totaling $210,000. If the dividend payout ratio was 70%, then the net income was:
Transcribed Image Text:Stern Company has 100,000 shares of common stock and 20,000 shares of preferred stock outstanding. There was no change in the number of common or preferred shares outstanding during the year. Preferred stockholders received dividends totaling $140,000 during the year. Common stockholders received dividends totaling $210,000. If the dividend payout ratio was 70%, then the net income was:
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