Question 2 (of 6 Save & Exit Submi 3 points The records of Hollywood Company ref

Question

Question 2 (of 6 Save & Exit Submi 3 points The records of Hollywood Company reflected the following balances in the stockholders' equity accounts at the end of the current year Common stock, $11 par value, 33,000 shares outstanding Preterred stock, 11 percent, $9 par value, 6,000 sharès outstanding Retained eanings, $224,000 the distribution of an $65,000 cash dividend. No determine dividend amounts under two independent On September 1 of the current year, the board of directors was dividends were paid during the previous two years. You have been a. The preterred stock is noncumulative b. The preferred stock is cumulative Required: 1·Determine the total and per share amounts that would be pad to te common stockholders and the under the two independent assumptions Round "per share" to 2 decimal places) Total Per share Total Per share 1157 A 12/5/20 Hints Reterences

Explanation / Answer

(in $) Preferred Common (6000 Shares) (33000 shares) a) Non cumulative Preferred (6000 shares*11%*9$) 5940 Balance to Common (65000-5940) 59060 Total No. Of shares 6000 33000 Per share 0.99 1.79 b) Cumulative Preferred arrears (6000shares*11%*9$* 2 years) 11880 Preferred (6000 shares*11%*9$) 5940 Balance to Common (65000-11880-5940) 47180 Total No. Of shares 6000 33000 Per share 2.97 1.43 Preferred Common Non cumulative Total 5490 59060 Per Share                   0.99                      1.79 Cumulative Total 17820 47180 Per Share                   2.97                      1.43

Related Questions

Navigate

• Browse (All)
• Browse Q
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.