records of Hofman Company reflected the following balances in the stockholders\'

Question

records of Hofman Company reflected the following balances in the stockholders' equity accounts at December 31, 2015: Common stock, par $12 per share, 46,500 shares outstanding. Preferred stock, 8 percent, par $12.5 per share, 7,210 shares outstanding. Retained earnings, $233,000. On January 1, 2016, the board of directors was considering the distribution of a $63,300 cash dividend. No dividends were paid during 2014 and 2015. Required: 1. Determine the total and per-share amounts that would be paid to the common stockholders and to the preferred stockholders under two independent assumptions a. The preferred stock is noncumulative. (Round "Per Share" to 2 decimal places and rest to the nearest dollar amount.) Total Per Share Paid to the Preferred Stockholders Paid to the Common Stockholders b. The preferred stock is cumulative. (Round "Per Share" to 2 decimal places and rest to the nearest dollar amount.) Total Per Share Paid to the Preferred Stockholders Paid to the Common Stockholders

Explanation / Answer

1 total per share a paid to prf holders 7210 1 paid to common holder 56090 1.21 b total per share paid to prf holders 14420 2 paid to common holder 48880 1.05 2 b 3 a,b,c

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