Use the following information for the Exercises below The fo

Use the following information for the Exercises below. The following information applies to the questions displayed below] 2 York\'s outstanding stock consists of 85,000 shares of noncumulative 60% preferred stock with a $5 par value and 150,000 shares of common stock with a $1 par value. During its first four years of operation, the corporation declare paid the following total cash dividends 2016 total cash dividends 2017 total cash dividends 2018 total cash dividends ok 23,580 280,800 nt Exercise 11-8 Dividends on common and noncumulative preferred stock L O C2 int Determine the amount of dividends paid each year to each of the two classes of stockholders: preferred and common Also c the total dividends paid to each class for the four years combined. (Round your \"Dividend places.) per Preferred Share\" answers to 3 Par Value per Dividend per Preferred Dividend Rate Preferred Preferredreferred Dividend Share Paid to Common Total Cash Paid to Arrears at ear end Dividend Paid Preferred 13,900 S 13.900 S 2015 2016 2017 2018 23.500 280,000 430,000 280.000 S 747,400$ 317,400S

Solution

Note: As it is given in the question that preferred stock is noncummulative that is why unpaid dividend will not be accumulated for next years. Thus there will be no dividend arrears at the end of year because preferred dividend will be paid as per available profits and in case lower profits low amount of dividends will be paid.

Par value per preferred share

Dividend rate

Dividend per preferred share

Number of preferred shares

Preferred dividend

Annual preferred dividend

$5

6%

$0.3

85000

$25500

Total cash dividend paid

Paid to preferred

Paid to common

Dividends in arrears at year-end

2015

$13900

$13900

Nil

Nil

2016

$23500

$23500

Nil

Nil

2017

$280000

$25500

$254500

Nil

2018

$430000

$25500

$404500

Nil

Total

$747400

$88400

$659000

	Par value per preferred share	Dividend rate	Dividend per preferred share	Number of preferred shares	Preferred dividend
Annual preferred dividend	$5	6%	$0.3	85000	$25500
	Total cash dividend paid	Paid to preferred	Paid to common	Dividends in arrears at year-end
2015	$13900	$13900	Nil	Nil
2016	$23500	$23500	Nil	Nil
2017	$280000	$25500	$254500	Nil
2018	$430000	$25500	$404500	Nil
Total	$747400	$88400	$659000