Question

Required information Use the following information for the Exercises below. [The following information applies to the questions displayed below.) Part 2 of 2 York's outstanding stock consists of 80,000 shares of noncumulative 7.5% preferred stock with a $5 par value and also 200,000 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. 14.28 points 2016 total cash dividends 2017 total cash dividends $ 20,000 28,000 2018 total cash dividends 2019 total cash dividends $200,000 350,000 eBook Exercise 11-9 Dividends on common and cumulative preferred stock LO C2 Print Determine the amount of dividends paid each year to each of the two classes of stockholders assuming that the preferred stock is cumulative. Also determine the total dividends paid to each class for the four years combined. (Round your "Dividend per Preferred Share" answers to 3 decimal places.) References Par Value per Preferred Share Dividend Rate Dividend per Preferred Share Number of Preferred Shares Preferred Dividend Annual Preferred Dividend: Paid to Preferred Paid to Common Dividends in Arrears at year-end 2016 2017 2018 Total Cash Dividend Paid $ 20,000 28,000 200,000 350,000 $ 598,000 2019 Totals $ 0 $ 0

Answer 1

	Par Value per Preferred Share	Dividend Ratio	Dividend per preferred share	Number of Preferred shares	Preferred Dividend
Annual Preferred Dividend:	$5	7.50%	$0.38	80,000	$30,000.00
	Total cash Dividend Paid	Paid to Preferred	Paid to Common	Dividends in Arrears at year-end
2016	$20,000	$20,000		$10,000
2017	$28,000	$28,000		$12,000
2018	$200,000	$52,000	$148,000	$0
2019	$350,000	$30,000	$320,000	$0
Totals	$598,000	$130,000	$468,000

Note: Common stock holders will get dividends after payment for cumulative preferred stock holders.