When a dividend is not declared on preferred stock, and the
common shareholders cannot receive a...
When a dividend is not declared on preferred stock, and the
common shareholders cannot receive a dividend until all past and
current dividends are paid to the preferred shareholders, the
preferred stock is
a. noncumulative
b. participating
c. redeemable
d. cumulative.
The following is the shareholders’ equity section of Ayayai
Corp. at December 31, 2020:
Preferred shares,a...
The following is the shareholders’ equity section of Ayayai
Corp. at December 31, 2020:
Preferred shares,a authorized 100,000 shares; issued
33,000 shares
$
1,155,000
Common shares (unlimited authorized, 51,000 issued)
1,275,000
Contributed surplus
107,000
Total paid-in capital
2,537,000
Retained earnings
2,962,600
Total shareholders’ equity
$
5,499,600
a The preferred shares have a $2 dividend rate, are
cumulative, and participate in distributions in excess of a $3
dividend on the common shares.
Q. No dividends were paid in 2018 or 2019....
Preferred shares,a authorized 100,000 shares; issued 33,000
shares $ 1,155,000
Common shares (unlimited authorized, 51,000 issued)...
Preferred shares,a authorized 100,000 shares; issued 33,000
shares $ 1,155,000
Common shares (unlimited authorized, 51,000 issued)
1,275,000
Contributed surplus 107,000
Total paid-in capital 2,537,000
Retained earnings 2,962,600
Total shareholders’ equity $ 5,499,600
a The preferred shares have a $2 dividend rate, are cumulative,
and participate in distributions in excess of a $3 dividend on the
common shares. Q. No dividends were paid in 2018 or 2019. On
December 31, 2020, Ayayai wants to pay a cash dividend of $5 per...
Hanson Co. had 200,000 shares of common stock, 20,000 shares of
convertible preferred stock, and $1,000,000...
Hanson Co. had 200,000 shares of common stock, 20,000 shares of
convertible preferred stock, and $1,000,000 of 6% convertible bonds
outstanding during 2015. The preferred stock is convertible into
40,000 shares of common stock. During 2015, Hanson paid dividends
of $.60 per share on the common stock and $1.50 per share on the
preferred stock. Each $1,000 bond is convertible into 40 shares of
common stock. The net income for 2015 was $400,000 and the income
tax rate was 30%....
a. The following is the shareholders’ equity section of Natalina
Inc. at December 31, 2019: Preferred...
a. The following is the shareholders’ equity section of Natalina
Inc. at December 31, 2019: Preferred shares, $5 dividend, 5,000
outstanding $250,000 Common shares (5,000 outstanding) 200,000
Assume that $95,000 dividends are paid in 2019. Preferred shares
dividends were not paid last year. What amount of dividends is paid
to the preferred shareholders in 2019 assuming they are cumulative
and participating? Show calculations.
Before a company can pay dividends to the common shareholders,
the owners of cumulative preferred shares...
Before a company can pay dividends to the common shareholders,
the owners of cumulative preferred shares must receive
Select one:
a. dividends in arrears, but not the current year's
dividends
b. the current year's dividend, but not dividends in arrears
c. all dividends in arrears plus the current year's dividend
d. neither the current year's dividends nor dividends in
arrears
Katie Corporation, based in Liverpool, has 20,000 preferred
shares outstanding of no par value $2 dividend...
Katie Corporation, based in Liverpool, has 20,000 preferred
shares outstanding of no par value $2 dividend and 40,000 common
shares outstanding of no par value.
In its first years of operation, the company paid the following
dividends:
2010 .............$0
2011 .............$46,000
2012 ............. $78,000
2013 ............. $0
2014 ............. $82,000
Calculate the dividends paid to preferred and common shareholders
in each of the five years under the following three independent
situations:
a. Preferred shares are noncumulative and nonparticipating.
b. Preferred...
The shareholders' equity of Davis Industries includes the data
shown below. During 2019, cash dividends od...
The shareholders' equity of Davis Industries includes the data
shown below. During 2019, cash dividends od $22,000 were
declared
Common stock
shares authorized 15,000
shares issued&outstanding 12,000
par value $2
Preferred stock 8%
shares authorized 600
shares issued&outstanding 500
par value 100
Determine the amount of dividents payable to prefereed
shareholders and to common shareholders under each of the following
assumptions regarding the characteristics of the preferred
stock
Assumption A - The preferred stock is noncumulative and
nonparticipating
Assumption B...
Flatfish Limited reported the following items in shareholders’
equity on December 31, 2020:
Share capital: Preferred...
Flatfish Limited reported the following items in shareholders’
equity on December 31, 2020:
Share capital: Preferred shares, $5 cumulative dividend, 162,000
shares issued
and outstanding
$16,200,000
Share capital: Common shares, 708,000 issued and outstanding
28,320,000
Retained earnings
27,480,000
A) No dividends were declared in 2018 or 2019; however,
in 2020, cash dividends of $5,226,600 were declared. Calculate how
much would be paid to each class of shares.
Preferred
Common
Total
2018 arrears
2019 arrears
2020
$Enter a total amount.
$Enter...