Use the following information for the Exercises below. [The following informatio
ID: 2511375 • Letter: U
Question
Use the following information for the Exercises below.
[The following information applies to the questions displayed below.]
York’s outstanding stock consists of 85,000 shares of noncumulative 6.0% preferred stock with a $5 par value and also 150,000 shares of common stock with a $1 par value. During its first four years of operation, the corporation declared and paid the following total cash dividends:
Determine the amount of dividends paid each year to each of the two classes of stockholders: preferred and common. Also compute the total dividends paid to each class for the four years combined. (Round your "Dividend per Preferred Share" answers to 3 decimal places.)
2015 total cash dividends $ 13,900 2016 total cash dividends 23,500 2017 total cash dividends 280,000 2018 total cash dividends 430,000Explanation / Answer
Statementshowing Computations Paticulars 2015 2016 2017 2018 Total Dividend Paid 13,900.00 23,500.00 280,000.00 430,000.00 Preference Dividend to be paid = 85,000*6%*5 25,500.00 25,500.00 25,500.00 25,500.00 Preference Dividend Paid to the extent of profit 13,900.00 23,500.00 25,500.00 25,500.00 Dividend available for common stock - - 254,500.00 404,500.00 Total Dividend Paid= Common + Preferred 13,900.00 23,500.00 280,000.00 430,000.00