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Mamont248 [21]
3 years ago
11

Assuming that the company has retained earnings of $90,000, all of which is to be paid out in dividends, and that preferred divi

dends were not paid during the two years preceding the current year, state how much each class of stock should receive under each of the following conditions: A. The preferred stock is noncumulative and nonparticipating B. The preferred stock is cumulative and nonparticipating. C. The preferred stock is cumulative and participating.
Business
1 answer:
Allisa [31]3 years ago
3 0

Answer:

Some information was missing, so I looked it up:

The outstanding capital stock of Edna Millay Corporation consists of 2,000 shares of $100 par value, 8% preferred, and 5,000 shares of $50 par value common.

A. The preferred stock is noncumulative and nonparticipating

preferred dividends = $100 x 2,000 x 8% = $16,000

common stocks = $90,000 - $16,000 = $74,000

Preferred dividends not paid to noncumulative preferred stocks are "lost" and will not be paid in the future.

B. The preferred stock is cumulative and nonparticipating.

preferred dividends = ($100 x 2,000 x 8%) x 3 years = $48,000

common stocks = $90,000 - $48,000 = $42,000

C. The preferred stock is cumulative and participating.

preferred dividends = [($100 x 2,000 x 8%) x 2 years] + $$25,777.60 = $57,777.60

common stocks = $90,000 - $57,777.60 = $32,222.40

When preferred stocks participate in the company's earnings, they receive an additional revenue proportional to the dividends received by common stockholders.

$32,222.40 / $250,000 (common stocks) = 12.8888%

$200,000 x 12.8888% = $25,777.60

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Coronado Company begins operations on April 1. Information from job cost sheets shows the following. Manufacturing Costs Assigne
dolphi86 [110]

Answer:1)  Balance in work in Process Inventory for   April, May, June

=   $11,200, $22,300,   $11,`100

2) Balance of finished goods for   April, May, June=  $1,500, $11,100, $23,000    

3)Gross profit for May , June, July     $375,$2,775  $5,750    

Explanation:

Given

Manufacturing Costs Assigned

Job Number April       May    June          Month Completed

10              $6,200   $4,900                         May

11                5,000       4,700     $3,100       June

12               1,500                                           April

13                                  5,600 4,600            June

14                                     7,000 4,100      Not complete

Solution

1) Balance in work in Process Inventory

Job      April                        May                                  June

10       $6,200

11          5,000        5,000+ 4700(9,700)

12          -                          -                                              -

13        --                           5,600                                   --

14            ---                     $7000                                   $7000 + 4,100 (11,100)

Total     $11,200             $22,300                                    $11,`100

2) Balance of finished goods

Job      April                        May                                  June

10      ---                       $6,200+ $4,900(11.100)  

11        ----                           ------                            5,000+4,700 + $3,100(12,800)      

12        $1,500                           -                                              -

13        --                           ----                                5,600+4,600 (10,200)  

14           Not complete                       Not complete

Total     $1,500                    $11,100                                $23,000

3) Gross profit for May , June, July.

May = Finished goods from previous month x mark up percent

$1,500 x 25%=$375

June  = Finished goods from previous month x mark up percent

$11,100 x 25%=$2,775

July= Finished goods from previous month x mark up percent

$23,000 x 25%=$5,750

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