Question

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.
  

2016 total cash dividends	$	9,100	2018 total cash dividends	$	295,000
2017 total cash dividends		19,000	2019 total cash dividends		445,000

Exercise 11-9 Dividends on common and cumulative preferred stock LO C2

Determine the amount of dividends paid each year to each of the two classes of stockholders assuming that the preferred stock is cumulative. Also determine the total dividends paid to each class for the four years combined. (Round your "Dividend per Preferred Share" answers to 3 decimal places.)

	Par Value per Preferred Share Dividend Rate Dividend per Preferred Share Number of Preferred Shares Preferred Dividend Annual Preferred Dividend: $5.00 6.0% Total Cash Dividend Paid Paid to Preferred Paid to Common Dividends in Arrears at year-end 2016 $9,100 $0 2017 19,000 0 2018 295,000 2019 445,000 Totals $768,100 $0 $0

Answer 1

	Par Value per Preferred Share	Dividend rate	Dividend per Preferred Share	No. of Preferred Shares	Preferred Dividend
Annual Preferred Dividend:	$                             5	6.00%	$                   0.300	70,000	$            21,000.00
	Total Cash Dividend paid	Paid to Preferred	Paid to Common	Dividends in Arrears at Year end
2016	$              9,100.00	$            9,100.00	$                          -	$          11,900.00 [21000 – 9100]
2017	$            19,000.00	$           19,000.00	$                          -	$          13,900.00 [21000 + 21000 – 9100 – 19000]
2018	$          295,000.00	$           34,900.00 [21000 + 13900]	$        260,100.00	$                          -
2019	$          445,000.00	$           21,000.00	$        424,000.00	$                          -
TOTAL	$          768,100.00	$           84,000.00	$        684,100.00	$                          -