brho0om91
Jun 22, 2010, 11:59 PM
The records of Hoffman Company reflected the following balances in the stockholders' equity accounts at December 31, 2009:
Common stock, par $14 per share, 33,000 shares outstanding.
Preferred stock, 8 percent, par $12 per share, 7,500 shares outstanding.
Retained earnings, $216,000.
On January 1, 2010, the board of directors was considering the distribution of a $67,000 cash dividend. No dividends were paid during 2008 and 2009.
Required:
Determine the total and per share amounts that would be paid to the common stockholders and to the preferred stockholders under two independent assumptions (Round your Dividend per share to 2 decimal places. Omit the "$" sign in your response):
a. The preferred stock is noncumulative.
b. The preferred stock is cumulative.
a. Noncumulative:
Preferred Common
Total dividend $ $
Dividend per share $ $
b. Cumulative:
Preferred Common
Total dividend $ $
Dividend per share $ $
Common stock, par $14 per share, 33,000 shares outstanding.
Preferred stock, 8 percent, par $12 per share, 7,500 shares outstanding.
Retained earnings, $216,000.
On January 1, 2010, the board of directors was considering the distribution of a $67,000 cash dividend. No dividends were paid during 2008 and 2009.
Required:
Determine the total and per share amounts that would be paid to the common stockholders and to the preferred stockholders under two independent assumptions (Round your Dividend per share to 2 decimal places. Omit the "$" sign in your response):
a. The preferred stock is noncumulative.
b. The preferred stock is cumulative.
a. Noncumulative:
Preferred Common
Total dividend $ $
Dividend per share $ $
b. Cumulative:
Preferred Common
Total dividend $ $
Dividend per share $ $