Question

 York's outstanding stock consists of 70,000 shares of noncumulative 8.5% preferred stock with a $5 par value and also 290,000 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.

 Year 1 total cash dividends $ 18,800

 Year 2 total cash dividends 27,700

 Year 3 total cash dividends 245,000

 Year 4 total cash dividends 395,000

 Exercise 11-10 Dividends on common and noncumulative preferred stock LO C2

 Determine the amount of dividends paid each year to each of the two classes of stockholders: preferred and common. (Round your "Dividend per Preferred Share" answer to 3 decimal places.)

 Use the data in Exercise 11-10 to determine the amount of dividends paid each year to each of the two classes of stock assuming that the preferred stock is cumulative. (Round your "Dividend per Preferred Share" answer to 3 decimal places.)

Answer 1

b) Schedule

	Par value per preferred share	Dividend rate	dividend per preferred share	Number of preferred share	Preferred dividend
Annual preferred dividend	5	8.5%	0.425	70000	29750
	Total cash dividend paid	Paid to preferred	Paid to Common	Dividend in arrears at year end
Year 1	18800	18800	0	10950
Year 2	27700	27700	0	13000
Year 3	245000	42750	202250	0
Year 4	395000	29750	365250	0
Total	686500	119000	567500