The records of Seahawks Company reflected the following balances in the stockholders' equity accounts at the end of the current year: Common stock, $12 par value, 47,000 shares outstanding Preferred stock, 11 percent, $10 par value, 8,000 shares outstanding Retained earnings, $234,000 On September 1 of the current year, the board of directors was considering the distribution of a(n) $79,000 cash dividend. No dividends were paid during the previous two years. You have been asked to determine dividend amounts under two independent assumptions: a. The preferred stock is noncumulative. b. The preferred stock is cumulative. Required: 1. Determine the total and per share amounts that would be paid to the common stockholders and the preferred stockholders under the two independent assumptions. Note: Round your "per share" amounts to 2 decimal places. Noncumulative: Total Per share Cumulative: Total Per share Preferred stock Common stock
The records of Seahawks Company reflected the following balances in the stockholders' equity accounts at the end of the current year: Common stock, $12 par value, 47,000 shares outstanding Preferred stock, 11 percent, $10 par value, 8,000 shares outstanding Retained earnings, $234,000 On September 1 of the current year, the board of directors was considering the distribution of a(n) $79,000 cash dividend. No dividends were paid during the previous two years. You have been asked to determine dividend amounts under two independent assumptions: a. The preferred stock is noncumulative. b. The preferred stock is cumulative. Required: 1. Determine the total and per share amounts that would be paid to the common stockholders and the preferred stockholders under the two independent assumptions. Note: Round your "per share" amounts to 2 decimal places. Noncumulative: Total Per share Cumulative: Total Per share Preferred stock Common stock
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:The records of Seahawks Company reflected the following balances in the stockholders' equity accounts at the end of the current
year:
Common stock, $12 par value, 47,000 shares outstanding
Preferred stock, 11 percent, $10 par value, 8,000 shares outstanding
Retained earnings, $234,000
On September 1 of the current year, the board of directors was considering the distribution of a(n) $79,000 cash dividend. No
dividends were paid during the previous two years. You have been asked to determine dividend amounts under two independent
assumptions:
a. The preferred stock is noncumulative.
b. The preferred stock is cumulative.
Required:
1. Determine the total and per share amounts that would be paid to the common stockholders and the preferred stockholders
under the two independent assumptions.
Note: Round your "per share" amounts to 2 decimal places.
Noncumulative:
Total
Per share
Cumulative:
Total
Per share
Preferred
stock
Common
stock
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