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 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. 2016 total cash dividends 2017 total cash dividends $20, 28,888 2018 total cash dividends 2019 total cash dividends $ 200,000 350, eee Exercise 11-9 Dividends on common and cumulative preferred stock LO C2 Determine the amount of dividends pald each year to each of the two classes of stockholders assuming that the preferred stock is cumulative. Also determine the total dividends pald 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 Preferred Share Number of Preferred Shares Preferred Dividend Annual Preferred Dividend: Total Cash Dividend Paid Paid to Preferred Paid to Common Dividends in Arrears at year-end 2016 2017 20.000 28,000 200.000 350,000 2018 2019 Totals

Answer 1

Solution:

	Par Value per Preferred share	Dividend Rate	Dividend per preferred share	Number of preferred shares	Preferred Dividend
Annual Preferred Dividend	$5	7.50%	$0.375	80000	$30,000
	Total Cash dividend Paid	Paid to Preferred	Paid to common	Dividend in arrears at year-end
2016	$20,000	$20,000	$0	$10,000
2017	$28,000	$28,000	$0	$12,000
2018	$2,00,000	$42,000	$1,58,000	$0
2019	$3,50,000	$30,000	$3,20,000	$0
Totals	$5,98,000	$1,20,000	$4,78,000	$22,000