Question

Required information Use the following information for the Exercises below. [The following information applies to the questions displayed below. York's outstanding stock consists of 70,000 shares of 6.0% preferred stock with a $5 par value and also 180,000 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: $ 2015 total cash dividends 2016 total cash dividends 2017 total cash dividends 2018 total cash dividends 9, 10e 19, eee 295,000 445, eee Exercise 11-8 Dividends on common and noncumulative preferred stock LO C2

Answer 1

| Par value per Leividind Preffered share rate Dividend per Preferred share No. of preferred , Shares Preffered dividend. 67 Foob = 0.3 Ret Pre. Shate 70000 Shares Annual preffered dividend: 21000 per year - - Total cash dividend paid Paid to Preffered Paia to common Dividends in astears at year eราง 9100 Foco 9100 11,900 2015 0 2016 19000 19000 0 2000 2017 295000 21000 274000 2019 HHSO00 76%100 21000 424000 70100 698000 13900 Totsdanned 765100 CamScanner

* prefferrence dividends are paid every year at 6% of their preferred stock at par value. Te; (70000 x 5) x6% = 21000 * after paying of prefferred dividenas remaining total dividenas are paid to common share holders. * Here, in this problem these prefferrence shares are non-cummulative. so, if any devigend was in arrear after the year and they can't be Carry forward to next year. * Preferrence dividend per Shave a Total dividend per year Total no. of preferrence Shares 210DO FODOD $0.3 per preterrence Shave. CS Scanned with CamScanner
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