Use the data in Exercise 13-8 to 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.
in Exercise 13-8
Norton’s outstanding stock consists of (a) 13,000 shares of noncumulative 8% preferred stock with a
$10 par value and (b) 32,500 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.
2009 . . . . . . . . . . . . . . . . . . . . . . . . $ 8,000
2010 . . . . . . . . . . . . . . . . . . . . . . . . 24,000
2011 . . . . . . . . . . . . . . . . . . . . . . . . 120,000
2012 . . . . . . . . . . . . . . . . . . . . . . . . 197,000
Determine the amount of dividends paid each year to each of the two classes of stockholders. Also compute
the total dividends paid to each class for the four years combined.
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