Use the following information for the Exercises below. [The following informatio

Question

Use the following information for the Exercises below.

[The following information applies to the questions displayed below.]

York’s outstanding stock consists of 85,000 shares of noncumulative 6.0% preferred stock with a $5 par value and also 150,000 shares of common stock with a $1 par value. During its first four years of operation, the corporation declared and paid the following total cash dividends:
  

Determine the amount of dividends paid each year to each of the two classes of stockholders: preferred and common. Also compute the total dividends paid to each class for the four years combined. (Round your "Dividend per Preferred Share" answers to 3 decimal places.)

2015 total cash dividends $ 13,900 2016 total cash dividends 23,500 2017 total cash dividends 280,000 2018 total cash dividends 430,000

Explanation / Answer

Statementshowing Computations Paticulars 2015 2016 2017 2018 Total Dividend Paid          13,900.00          23,500.00     280,000.00       430,000.00 Preference Dividend to be paid = 85,000*6%*5          25,500.00          25,500.00       25,500.00          25,500.00 Preference Dividend Paid to the extent of profit          13,900.00          23,500.00       25,500.00          25,500.00 Dividend available for common stock                         -                           -       254,500.00       404,500.00 Total Dividend Paid= Common + Preferred          13,900.00          23,500.00     280,000.00       430,000.00

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