ezto.mhedu McGraw-Hill Connect Pre-lecture Quiz #10 (Chpt 11) ROOLEE connect ACC

Question

ezto.mhedu McGraw-Hill Connect Pre-lecture Quiz #10 (Chpt 11) ROOLEE connect ACCOUNTING e-lecture Quiz #10 (Chpt 11) Question 5 (of 6) Colliers, Inc. has 145,000 shares of cumulative preferred stock outstanding. The preferred stock pays dividends in the amount of $2 per share, but because of cash flow problems, the company did not pay any dividends last year. The board of directors plans to pay dividends in the amount 1. What amount will go to preferred stockholders? Dividend Payment to Preferred Stockholders 2. How much will be available for common stock dividends? Dividend Payment to Common Stockholders References eBook & Resources Worksheet Difficulty: 1 Easy

Explanation / Answer

Answer to Part 1 Particulars Calculation Amount ($) Previous Year Dividend to Preference Stock holders 145000*2 290000 Current Year Dividend to Preference Stock holders 145000*2 290000 Divided Payment to Preference Stock holders 580000 Answer to Part 2 Total Dividends Paid 700000 Less: Preference Dividend 580000 Divided Payment to Common Stock holders 120000

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