Question

Required information (The following information applies to the questions displayed below.) York's outstanding stock consists of 65,000 shares of noncumulative 70% preferred stock with a $5 par value and also 110,000 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 $ 11,500 20,700 260,000 410,000 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. (Round your "Dividend per Preferred Share" answers to 3 decimal places.) Par Value per Preferred Share Dividend Rate Dividend per Number of Preferred Preferred Share Shares Preferred Dividend Annual Preferred Dividend: Total Cash Dividend Paid Paid to Preferred Paid to Common Dividends in Arrears at year-end $ 2015 2016 2017 11,5001 20.700 260,000 410,0001 702,200 2018 Total: $ $ 0 $
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Answer 1

Answer with working and explanation is given below

Par value par preferred shares $5.00 Dividend Rate Dividend per preferred share $0.35 Number of Preferred shares Preferred Dividend Annual preference dividend 7% 65,000 $22,750 Paid to Preferred 2015 2016 2017 2018 Total: Total Cash Dividend paid $11,500 $20,700 $260,000 $410,000 $702,200 $11,500 $20,700 $22,750 $22,750 $77,700 Dividends in Paid to Arrears Common at year-end $0 Nil $0 Nil $237,250 $387,250 $624,500 Explanation: For 2015 and 2016 Dividend arrears is nil because preferred shares are non-cumulative in case of dividends are not declared for the year arrears cannot be carried over to next year