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Svet_ta [14]
3 years ago
15

Sweet Company’s outstanding stock consists of 1,000 shares of cumulative 5% preferred stock with a $100 par value and 10,000 sha

res of common stock with a $10 par value. During the first three years of operation, the corporation declared and paid the following total cash dividends. Dividend Declared year 1 $ 2,000 year 2 $ 6,000 year 3 $ 32,000 The amount of dividends paid to preferred and common shareholders in year 3 is:
Business
1 answer:
Diano4ka-milaya [45]3 years ago
5 0

Answer: In year three the preferred stockholders would receive $7,000 and the common stockholders would receive $25,000.

Explanation: Preferred stockholders are always paid before common stockholders. Since this stock in cumulative it means that when there is not enough income in one year to pay the preferred stock then the company needs to pay them when they have the money in the future.

In this case the preferred stock is 5% of $100 par value and is cumulative. This means that every year the company needs to pay 5% times $100 par value on each stock, and there is 1,000 shares, so the total is $5,000 in preferred stock dividends.

In year one and two they did not declare enough dividends to pay this full amount. In year one they declared $2,000 and year two they declared $6,000. At the end of year two they should have received $10,000, but only received $8,000. In year three they need to pay the preferred stockholders the $2,000 that are in arrears, plus the $5,000 for year three, for a total of $7,000. Since there was $32,000 in dividends declared and $7,000 is going to the preferred stockholders, it means that there is $25,000 left for the common stockholders. $25,000/10,000 shares equals $2.50 dividend per share.

You might be interested in
lack of property rights diminish economic growth. diminish economic growth. increases productivity. increases productivity. enco
nikdorinn [45]

The answer is diminish economic growth.

  • The lack of property rights will produce difficulties in the daily lives of the people, and they will not be rectified unless the government intervenes with some property rights, because everyone would grab the property with power because the property rights are not there to claim the rights.
  • Negative growth is defined as a drop in a company's revenues or earnings, or a drop in an economy's GDP in any quarter. Negative growth is characterized by declining wage growth and a decline of the money supply, and economists consider negative growth as a precursor to a future recession or depression.
  • Economists usually believe that four variables drive economic development and growth: human resources, physical capital, natural resources, and technology.

Thus this is the meaning of diminish economic growth.

To learn more about economic growth, refer: brainly.com/question/18964806

#SPJ4

5 0
1 year ago
In 2021, CPS Company changed its method of valuing inventory from the FIFO method to the average cost method. At December 31, 20
alekssr [168]

Answer:

Entry to record adjustment:

COGS Dr $9.4m

         Inventory Cr $9.4m

Explanation:

The question relates to a change in accounting policy. According to IAS 8 (changes in accounting policy and estimate), a change in accounting policy is to be reflected retrospectively and prospectively, which means any changes should be implemented by bringing changes in the past records. Since CPS company has been using FIFO method, the inventory has been overstated in the financial statements. A shift to AVCO has resulted in a decrease in inventory value.

The value of inventory has to be reduced as a result of change in accounting policy (i.e $38m - $28.6m). This is the closing inventory so a reduction in the value of closing inventory results in an increase in cost of goods sold (COGS), therefore, the adjusting entry will be aimed at reducing inventory and increasing cost of goods sold, see as follows:

Entry:

COGS Dr $9.4m

         Inventory Cr $9.4m

8 0
2 years ago
Laura mentions that employees will come back from tea break on time because they know it will let down their fellow work mates i
cupoosta [38]

Answer:

Cooperation and trust

Explanation:

There are clear distinctions between groups and teams. A group is a set of people brought together by common interests and inevitable circumstances, while a team is a group of people working together to reach a common goal.

The responsibility in a team is evenly dispersed; although the work is not done individually, the team is acting as an individual. That means that <em>trust </em>has to be present among team members; we have to know we won't be let down by a team member, like we don't let down ourselves.

<em>Trust</em> is one of the most essential inputs for effective <em>cooperation</em>.  

A team possessing such characteristics is highly <em>cohesive</em>.

6 0
3 years ago
The wet dog surf company borrows $32,000 for 4 months and will pay $1,120.00 interest . calculate wet dog's annual percentage in
Hunter-Best [27]
The formula is
I=prt
I interest paid 1120
p principle 32000
T time 4/12
R annual percentage interest rate?
Solve for r
R=I÷pt
R=1,120÷(32,000×(4÷12))
R=0.105×100
R=10.5%
6 0
3 years ago
Read 2 more answers
A new customer wants to open an account at your firm. When you ask him for a street address, he tells you that he will be moving
Rasek [7]

Answer: B. . The business address can be used for Customer Identification purposes and the account can be opened

Explanation:

From the question, we are told that a new customer wants to open an account at a firm and that when he was asked for his street address, he said that he will be moving soon to a different apartment complex and wants to use his business address.

Since the customer will be moving to a new apartment and therefore may not yet know his street address, the customer can use his business address for identification purpose. Therefore, the customer can open the account.

5 0
3 years ago
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