Required information Use the following information for the E

Required information 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 70% preferred stock with a $5 par value and also 260000 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: 2016 total cash dividends 2017 total cash dividends 2018 total cash dividends s 19,100 27,700 236,e40 380,e00

Solution

Case-1 Non Cummulative Par value Dividend Div. per Number of Preferred Prefered Sstock Rate Pref. share Pref. shares Dividend Prefered Stockcapital 425,000 7% 0.35 85000 29750 Total Cash Paid to Paid to Dividend in Dividend paid Preferred Common Arrears 2015 19100 19100 0 0 2016 27700 27700 0 0 2017 230,000 29750 200,250 0 2018 380000 29750 350250 0 Total 656800 106300 550500 0 Case-2 Cumulative Par value Dividend Div. per Number of Preferred Prefered Sstock Rate Pref. share Pref. shares Dividend Prefered Stockcapital 425,000 7% 0.35 85000 29750 Total Cash Paid to Paid to Dividend in Dividend paid Preferred Common Arrears 2015 19100 19100 0 10650 2016 27700 27700 0 12700 2017 230,000 42450 187,550 0 2018 380000 29750 350250 0 Total 656800 119000 537800 23350