Yousemite Bike Corp, manufactures mountain bikes and distributes them through re
ID: 2460087 • Letter: Y
Question
Yousemite Bike Corp, manufactures mountain bikes and distributes them through retail outlets in Califormia, Oregon, and Washington. Yosemite Bike Corp, has declared the following annual dividends over a six-year period ended December 31 of each year 2009, $24, 000, 2010, $10, 000; 2011, $126, 000; 2012, $100, 000; 2013, $125, 000; and 2014, $125, 000. During the entire period, the outstanding stock of the company was composed of 25, 000 shares of cumulative preferred 2% stock, $90 par, and 100, 000 shares of common stock, $4 par. Instructions 1. Determine the total dividends and the per-share dividends and the per-share dividends declared on each class of stock for each of the six years. There were no dividends in arrears on January 1, 2009. Summarize the data in tabular form, using the following column headings:Explanation / Answer
In commulative prefrence shares the dividend is carried forwad if remain unpaid during the years
So preference dividend per year = 25,000 * 90 * 2%= $45,000
So 2009 total dividend 24,000 so that means all is distributed amount preference share holders
24,000 / 25,000 = .96 per share
and the remaining 21,000 will be paid in the next year
2010 total dividend 10,000 all to preference shareholders
10,000/25,000 = .40 per share
remaining dividend 21,000 + 45,000-10,000 = $56,000
Now total dividend in 2011 $126,000 that means 56,000 carried forward + 45,000 current years
total dividend = 56,000 + 45,000 = $101,000 , remaining to common stock = $126,000 - $101,000 = $25,000
Year total dividends preferred dividend Common dividends 2009 24,000 24,000 .96 per shares 2010 10,000 10,000 .40 2011 126,000 101,000 4.04 25,000 .25 2012 100,000 45,000 1.8 55,000 .55 2013 125,000 45,000 1.8 80,000 .80 2014 125,000 45,000 1.8 80,000 .80Related Questions
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