The records of Hoffman Company reflected the following balances in the stockhold

Question

The records of Hoffman Company reflected the following balances in the stockholders' equity accounts at December 31, 2015 Common stock, par $12 per share, 46,500 shares outstanding Preferred stock, 8 percent, par $12.5 per share, 7,210 shares outstanding Retained earnings, $233,000 On January 1, 2016, the board of directors was considering the distribution of a $63,300 cash dividend. No dividends were paid during 2014 and 2015 Required: 1. Determine the total and per-share amounts that would be paid to the common stockholders and to the preferred stockholders under two independent assumptions: a. The preferred stock is noncumulative. (Round "Per Share" to 2 decimal places and rest to the nearest dollar amount.) Total Per Share 7,.210f $ 1.00 Paid to the Preferred Stockholders $ Paid to the Common Stockholders56,090: $ 1.21 b. The preferred stock is cumulative. (Round "Per Share" to 2 decimal places and rest to the nearest dollar amount. Total Per Share Paid to the Preferred Stockholders 21,630 Paid to the Common Stockholders

Explanation / Answer

a. Preferred Stock is Non Cumulative

Paid to Preferred Stock = $7210 and Per Share is $1

Paid to Common Stock = $56090 and Per Share is $1.21

b. Preferred Stock is Cumulative

Paid to Preferred Stock = $14420 and Per Share is $2

Paid to Common Stock = $48880 and Per Share is $1.05

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.