Answer Happy

exercise 11-10 Dividends on common and noncumulative preferred stock c2 and also 200,000 shares of common stock with a su par value. During its first four years of operation, para York's outstanding stock consists of 80,000 shares of noncumulative 7.5% preferred stock with a S5 puan alue corporation declared and paid the following total cash dividends. Determine the amount of dividends paldo each year to each of the two classes of stockholders preferred and common. Also compute the total dividends paid to each class for the four years combined. Year 1 total cash dividends $20,000 Year total cash dividende $200,000 Year 2 total cash dividends 28,000 Year 4 total cash dividend 20.000 Calculation of Preferred Dividend: **Assume the preferred stock is Cumulative instead of noncumulative** Common Cumulative Preferred Year 1 ($20,000 paid) Preferred Common - remainder Totals for the year Year 2 ($28,000 paid) Preferred - arrears from year 1 Preferred Common - remainder Totals for the year Year 3 ($200,000 paid) Preferred - arrears from year 2 Preferred Common - remainder Totals for the year Year 4 ($350,000 paid) Preferred Common - remainder Totals for the year Totals for four years