Ultimate Sportswear has $180,000 of 7% noncumulative, nonparticipating, preferre

Question

Ultimate Sportswear has $180,000 of 7% noncumulative, nonparticipating, preferred stock outstanding. Ultimate Sportswear also has $580,000 of common stock outstanding. In the company's first year of operation, no dividends were paid. During the second year, the company paid cash dividends of $38,000. This dividend should be distributed as follows:

$0 preferred; $38,000 common.

$9,500 preferred; $28,500 common.

$20,000 preferred; $18,000 common.

$12,600 preferred; $25,400 common.

$19,000 preferred; $19,000 common.

Explanation / Answer

answer = $12600 preferred ; $25400 common

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