Required information Part 1 of 2 [The following information applies to the quest

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Required information Part 1 of 2 [The following information applies to the questions displayed below] York's outstanding stock consists of 75,000 shares of noncumulative 60% preferred stock with a $5 par value and also 240,000 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 2015 total cash dividends 2016 total cash dividends 2817 total cash dividends 2818 total cash dividends $ 12,106 20,50e 370,800 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 ber of Preferred Dividend Rate Preferred ShareShares Dividend Total Cash Dividend Paid Preferred Commonyear-end Paid to Paid toArrears at 12,100 20,500 220,000 370,000 622,600 2017 2018 0

Explanation / Answer

Year total Cash Dividend Paid (A) Paid to Preferred Stock (B) Paid to Common Shares (A -B) Dividend in the arreas at the year end Remarks 2015 $               12,100.00 $                                     12,100.00 $                          -   $                          -   No Balance for Common Shares 2016 $               20,500.00 $                                     20,500.00 $                          -   $                          -   No Balance for Common Shares 2017 $            2,20,000.00 $                                     22,500.00 $       1,97,500.00 $                          -   2018 $            3,70,000.00 $                                     22,500.00 $       3,47,500.00 $                          -   TOTAL $            6,22,600.00 $                                     77,600.00 $       5,45,000.00 $                          -   Note: Preferred stock are non-cumulative stock so once not paid then dividend        no paid in the year will not carry forward to next year so dividend arrears will be Zero WORKING NOTE: Calculation of preferred stock dividend payable per year Value of the preferred stock = (75,000 Shares X $ 5 Per share) = $             3,75,000 Dividend payable per year is 6% = $                 22,500 Dividend per preferred shares = $ 5 X 6% = $ 0.3000

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