The following elements of shareholders\' equity are adapted from the statement o

Question

The following elements of shareholders' equity are adapted from the statement of financial position of Sanderson Corporation: ?(Click on the icon to view the data.) Sanderson Corporation paid no preferred dividends in 2015 but paid the designated amount of cash dividends per share to preferred shareholders in all prior years. Requirement 1. Compute the dividends to preferred and common shareholders for 2016 if total dividends are $160,000 Class of Shares 2016 Data Table Preferred Common Total Shareholders' Equity $Thousands Preferred Shares, cumulative, $0.70, 55,000 shares issued and outstanding Common Shares, 8,500,000 shares issued 550 and outstanding 850 PrintDone

Explanation / Answer

Dividend distribution :

Preferred shareholders = 55000*.70*2 = 77000

Common shareholders = 160000-77000 = 83000

Total = 160000

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