Question

Required information [The following information applies to the questions displayed below.] York's outstanding stock consists of 80,000 shares of 6.0% preferred stock with a $5 par value and also 300,000 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 $ 13,000 22,000 250,000 400,000 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. Assume that the preferred stock is noncumulative. (Round your "Dividend per Preferred Share" answers to 3 decimal places.)

Answer 1

	Par Value per preferred share	Dividend rate	Dividend per preferred share	Number of Preferred shares	Preferred Dividend
Annual Preferred Dividend	$              5.00	6%	$             0.30	80000	$      24,000
	Total Cash Dividend paid	Paid to Preferred	Paid to common	Dividend in arrears at year end
2015	$          13,000	$        13,000	$                  -	$                  -
2016	$          22,000	$        22,000	$                  -	$                  -
2017	$      2,50,000	$        24,000	$      2,26,000	$                  -
2018	$      4,00,000	$        24,000	$      3,76,000	$                  -
Total	$      6,85,000	$        83,000	$      6,02,000	$                  -

Since preferred shares are non cumulative, Dividend in arrears will be 0 at year end