oHework: Chapter 10 - Hwk core: 0 of 2 pls 10-30A (similar to) Lakeside Manufact

ID: 2565529 • Letter: O

Question

oHework: Chapter 10 - Hwk core: 0 of 2 pls 10-30A (similar to) Lakeside Manufacturing, Inc, reported the following at December 31,2016, and December 31, 2017 4of6(°complete) MN Score: 0%, 0of. Question Hetp EE (Cick the icon to view the data.) Lakeside Manufacturing has paid all prefered dividends only through 2013 1. Compute the total amounts of dividends to both preferred and common for 20 Begin with 2016. Compute the total amounts of dividends to both preferred and common for 2016 it total dividends are $90,000 16 and 201total dividends are $90.000 in 2016 and $2.25,000 in 2017 Class of Stock 2016 Dhvidends Data Table Total Stockholders' Equity Preferred stock. cumulative, S7 00 par, 3%, 60.000 shares issued Common stock, $0.30 par, 9.250,000 shares issued 420000 2,775.000 Enter any number in the edn fields and then c Print Done be 9 144 8 6 4

Explanation / Answer

Stock holders’ equity:

Preferred stock cumulative $7.00 par 3% 60,000 shares means that preferred dividends would be :

$420,000 X 3% = $12,600

2016

Total dividends = $90,000
Preferred dividend = $12,600
Common dividend = $90,000 - $12,600 = $77,400

2017

Total dividends = $225,000
Preferred dividend = $12,600
Common dividend = $225,000 - $12,600 = $212,400

Assuming that there were no dividend arrears.

computation of total amount of dividends for both preferred and common stock:

Class of stock

2016 dividends

2017 dividends

Preferred

$12,600

Common

$77,400

$212,400

total

$90,000

$225,000