Billy Bob Inc. has the following accounts and amounts in its stockholder\'s equi
ID: 2475615 • Letter: B
Question
Billy Bob Inc. has the following accounts and amounts in its stockholder's equity section of the balance sheet: What number of common stock is issued and outstanding? The stockholder's equity section of the Canner Co. balance sheet contains the following information: 4% Preferred Stock, $100 par value, cumulative, 5,000 shares issued Common Stock, $1 Par Value, 20,000 shares issued Dividends were not declared or paid in 2004 or 2005. The board of directors declares and pays a $50,000 dividined in 2006. In 2006, stock holders should receive dividends of:Explanation / Answer
5. A
Issued =500000/5=100000
Outstanding= 100000-(40000/20)=98000
6. C.
As they are cumulative shares firstly they will get their iutstanding dividend and current year dividend . Outanding is for two years dividend=40000
Current year dividend=20000
Total 60000 but only get 50000 as dividend and remaining 10000 is become outstanding
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