Use the following information for the Exercises below. [The following informatio

Question

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 7.0% preferred stock with a $5 par value and also 140,000 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:
  

Exercise 11-8 Dividends on common and noncumulative preferred stock LO C2

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.)

2015 total cash dividends $ 16,500 2016 total cash dividends 26,000 2017 total cash dividends 275,000 2018 total cash dividends 425,000

Explanation / Answer

Exercise 11-8 Dividends on common and noncumulative preferred stock LO C2

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.

Annual preferred dividend = 80000*5*7% = 28000

Preferred Common Total 2015 total cash dividends 16500 0 16500 2016 total cash dividends 26000 0 26000 2017 total cash dividends 28000 247000 275000 2018 total cash dividends 28000 397000 425000 Total 98500 644000 742500

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