Question

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 6.0% preferred stock with a $5 par value and also 150,000 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:
  

2015 total cash dividends	$	13,900
2016 total cash dividends		23,500
2017 total cash dividends		280,000
2018 total cash dividends		430,000

Determine the amount of dividends paid 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. (Round your "Dividend per Preferred Share" answers to 3 decimal places.)

Answer 1

Statementshowing Computations
Paticulars	2015	2016	2017	2018
Total Dividend Paid	13,900.00	23,500.00	280,000.00	430,000.00
Preference Dividend to be paid = 85,000*6%*5	25,500.00	25,500.00	25,500.00	25,500.00
Preference Dividend Paid to the extent of profit	13,900.00	23,500.00	25,500.00	25,500.00
Dividend available for common stock	-	-	254,500.00	404,500.00
Total Dividend Paid= Common + Preferred	13,900.00	23,500.00	280,000.00	430,000.00