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Snezhnost [94]
3 years ago
10

Distributing Cash Dividends to Preferred and Common Shareholders Dechow Company has outstanding 20,000 shares of $50 par value,

6% cumulative preferred stock, and 80,000 shares of $10 par value common stock. The company declares and pays cash dividends amounting to $160,000. a. If no arrearage on the preferred stock exists, how much in total dividends, and in dividends per share, is paid to each class of stock
Business
1 answer:
Anna11 [10]3 years ago
8 0

Answer:

Preferred Stock = $60,000 and $3.00

Common Stock = $100,000 and $1.25

Explanation:

Dividends

Preferred Stock has preference when it comes to dividends payments. The remaining dividends are then paid to Common Stockholders.

Preferred Stock dividend = 20,000 x $50 x 6% = $60,000

Common Stock dividend = $160,000 - $60,000 = $100,000

Dividends per share

Preferred Stock dividend =  $60,000 ÷ 20,000 shares = $3.00

Common Stock dividend =  $100,000 ÷ 80,000 shares = $1.25

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Kieso Company borrowed $740,000 for three months. The annual interest rate on the loan was 9%. Kieso's fiscal year ends on Decem
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Answer:

Last Fiscal Year:

Interest Expense = $5550

Current Fiscal Year:

Interest Expense = $11100

Explanation:

According to the accrual basis of accounting, the expenses and revenues relating to a certain period should be recorded in that particular period whether of not they have been received. The fiscal year of Kieso ends on 31 December and as the loan was taken one month prior to the start of the current fiscal year, it was taken at the start of December of last fiscal year.

This means that the interest expense on loan relating to last December will be charged to the last fiscal year and the interest expense relating to January and February will be charged to the current fiscal year. The interest expense amount will be calculated as follows,

Last Fiscal Year = 740000 * 9% * 1/12  => $5550

Current Fiscal Year = 740000 * 9% * 2/12  => $11100

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2 years ago
Tom​ girard, director of retail​ operations, indicates that he is able to keep​ "hands-on" with the​ staff, and he is always awa
romanna [79]

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6 0
3 years ago
A minor can disaffirm a contract if:
SashulF [63]

Answer:

a. he or she has not ratified the contract on reaching majority.

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4 0
3 years ago
Which is not a characteristic of a demand curve?
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Demand can be defined as the quantity of a commodity or service that a consumer is willing and able to buy at a given price and at a particular point in time. And the law of demand states that “other factors being held constant, the higher the price of a commodity, the lower the quantity being demanded by the consumer. And the lower the price of a commodity, the higher the quantity being demanded by a consumer.”

This is simply a rational consumer behavior. So if the price of movie tickets were to go up let’s say from $10 to $15 then a consumer who previously could afford to watch 8 movies in a month (that’s $80) would be having second thoughts and so, rather than spend $120 per month on movie tickets, would be more inclined to watch less movies and stay within his/her $80 budget.

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8 0
3 years ago
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