Answered: Year 1 total cash dividends $ 9,100…

Financial Accounting: The Impact on Decision Makers

10th Edition

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter11: Stockholders' Equity

Section: Chapter Questions

Problem 11.13AMCP

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Question

Year 1 total cash dividends	$ 9,100
Year 2 total cash dividends	19,000
Year 3 total cash dividends	295,000
Year 4 total cash dividends	445,000

York’s outstanding stock consists of 70,000 shares of noncumulative 6.0% preferred stock with a $5 par value and also 180,000 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:

Determine the amount of dividends paid each year to each of the two classes of stockholders: preferred and common. (Round your "Dividend per Preferred Share" answer to 3 decimal places.)

	Par Value per Preferred Share	Dividend Rate	Dividend per Preferred Share	Number of Preferred Shares	Preferred Dividend
Annual Preferred Dividend:
	Total Cash Dividend Paid	Paid to Preferred	Paid to Common	Dividends in Arrears at year-end
Year 1	$9,100
Year 2	19,000
Year 3	295,000
Year 4	445,000
Total:	$768,100