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netineya [11]
3 years ago
9

Brown Corporation has 500,000 shares of 9%, $40 par value cumulative preferred stock authorized, 100,000 shares issued, and 80,0

00 shares outstanding. In addition, Brown Corporation has 1,300,000 shares of $10 par value common stock issued and outstanding. Dividends relative to the preferred stock are two years in arrears. If Brown declares a $2,000,000 dividend during the current period, the amount of the dividend applicable to the preferred and common stockholders is:a. $576,000 and $1,424,000, respectivelyb. $720,000 and $1,280,000, respectivelyc. $1,080,000 and $920,000, respectivelyd. $864,000 and $1,136,000, respectively
Business
1 answer:
olganol [36]3 years ago
7 0

Answer:

D. $864,000 and $1,136,000, respectively

Explanation:

As the preferred stock dividend is cumulative, the company has to pay any outstanding dividend to preferred stockholders'.

Given,

Dividends relative to the preferred stock are two years in arrears.

Number of preferred shares outstanding = 80,000 shares

Par value = $40

Dividend rate = 9%

Annual dividend = 80,000 shares × $40 × 9% = $288,000

Therefore, current year preferred dividend = $288,000

As dividends were outstanding for the previous 2 years, last 2 years dividends = $288,000 + $288,000 = $576,000

Total dividends to be payable to preferred stockholders = $576,000 + $288,000 = $864,000

Therefore, common stockholders will receive = $2,000,000 - $864,000 = $1,136,000.

Therefore, <em>option </em><em>D</em><em> is the answer.</em>

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Veronika [31]

Answer: Introducing mass production methods into his business.

Explanation:

As the given information suggests that Cameron has a small graphic design business. He is responsible for customizing social websites which is a creative and time consuming task. This also require a lot of thinking and innovation skills. At the verge of expanding his business he should avoid mass production as this will likely to reduce his quality of production and limit his creativity.

4 0
3 years ago
BP ignored some safety regulations in order save $1 Million per day on the Horizon Deep Water Drilling Platform. How much did th
aleksklad [387]

Ignoring some safety regulations in order save $1 Million per day. The amount that  those violations end up costing the company is $100 Billion.

<h3>What is safety regulation?</h3>

Safety regulation can be defined as a set of rules and regulation that an employees are mandated to follow so as to prevent work hazard.

Based on the given scenario ignoring the safety regulation so as to save $1 million per day  will cost the company $100 Billion.

Which is why companies made it compulsory for employees to follow the saftey standard set so as to ensures that employees work in a safe and conducive environment .

Inconclusion the amount that  those violations end up costing the company is $100 Billion.

Learn more about Safety regulation here:brainly.com/question/8430576

4 0
2 years ago
The term____ refers to a market exchange that affects a third party who is outside or external to the exchange
amm1812
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4 0
3 years ago
A lender checking Jason's credit score for an auto loan would likely notice that...
TiliK225 [7]

When a lender checks the credit score of Jason for an auto loan, they would most likely notice that <u>b. He </u><u>paid off </u><u>a</u><u> car loan </u><u>after making</u><u> every payment</u><u> for 4 years. </u>

Lenders checking credit scores:

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The loan is for a car or an automobile of some sort so the lender will be looking for related loans in Jason's history. They will therefore most likely notice the car loan that was paid off.

In conclusion, a lender for an auto loan will most likely notice an auto loan history.

Options for this question include:

a. His savings account has more than $3000 in it

b. He paid off a car loan after making every payment for 4 years

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<em>Find out more at brainly.com/question/14805575. </em>

3 0
3 years ago
The Allowance for Bad Debts account has a debit balance of $ 9 comma 000$9,000 before the adjusting entry for bad debts expense.
Yakvenalex [24]

Answer:

the amount of the adjustment in the Allowance for

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Explanation:

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3 0
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