SuperbSuperb Manufacturing, Inc., reported the following at December 31, 2016, a

Question

SuperbSuperb

Manufacturing, Inc., reported the following at December 31,2016, and December 31,2017:

Superb

SuperbManufacturing has paid all preferred dividends only through

2013.

Requirement

1.

Begin with 2016. Compute the total amounts of dividends to both preferred and common for 2016 if total dividends are $100,000.

Class of Stock

2016 Dividends

Preferred

Common

Total

SuperbSuperb

Manufacturing, Inc., reported the following at December 31,2016, and December 31,2017:

Stockholders' Equity Preferred stock, cumulative, $1.00 par, 5%, 75,000 shares issued $75,000 Common stock, $0.25 par, 9,050,000 shares issued 2,262,500

Superb

SuperbManufacturing has paid all preferred dividends only through

2013.

Requirement

1.

Compute the total amounts of dividends to both preferred and common for 2016 and 2017
if total dividends are $100,000 in 2016 and $300,000 in 2017.

Begin with 2016. Compute the total amounts of dividends to both preferred and common for 2016 if total dividends are $100,000.

Class of Stock

2016 Dividends

Preferred

Common

Total

Explanation / Answer

1) Compute the total amounts of dividends to both preferred and common for 2016 and 2017
if total dividends are $100,000 in 2016 and $300,000 in 2017.

Class of stock 2016 dividends Preferred (75000*5%*4) 15000 Common (100000-15000) 85000 Total 100000

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