1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
dsp73
3 years ago
11

The outstanding capital stock of Novak Corporation consists of 1,800 shares of $100 par value, 7% preferred, and 5,100 shares of

$50 par value common. Assuming that the company has retained earnings of $80,000, all of which is to be paid out in dividends, and that preferred dividends were not paid during the 2 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 (Round answers to decimal places, es $38,487.) Preferred Common
(b) The preferred stock is cumulative and nonparticipating. (Round answers to decimal places, es $38,487) Preferred Common decimal places The preferred stock is cumulative and participating (Round the rate of participation to 4 decimal places, s 1.4278X Round answers to $38.487.)
Business
1 answer:
Alborosie3 years ago
7 0

Solution :

                                                                            Preferred            Common

Non cumulative and non Participative                    12,600               67,400

Cumulative and non participative                            37800                42200

Cumulative and participative                                   47876                32124

                             

                            <u>    Current Stock Out Standing    </u>

Common stock at the rate 50                             5100 shares         255000

Preferred stock 7% at the rate 100                    1800 shares          180000

         

           <u>  Cumulative the annual dividend on the preferred stock  </u>

Preferred stock dividend                                   (180000 x 7%)       12600

Dividend Arrears to preferred stock                   (12600 x 2)            25200

                        <u>   Non cumulative and non participative     </u>

                                                  Preferred                 Common        Total

Current year                               12600                                            12600

Arrears                                        0                                                    0

Common stock                                                            67400            67400

Total dividend                             12600                       67400            80000

                       <u>  Cumulative and non participative  </u>

                                                  Preferred                 Common        Total

Current year                               12600                                            12600

Arrears                                        25200                                            25200

Common stock                                                            42200            42200

Total dividend                             37800                       42200            80000

                          <u>  Cumulative and participative</u>

                                                  Preferred                 Common        Total

Current year                               12600                                            12600

Arrears                                        25200                                            25200

Common stock (255000 x 7%)                                   17850            17850

Balance dividend pro data          10076                      14274            24350

Total dividend                             47876                       32124            80000

Working notes :

Amount for the participation    = 80000-(12600+25200+17850)   = 24350

Rate of participation = $\frac{24350}{(255000+180000)} $              = 5.5977%

Participating dividend:

Preferred stock = 18000 x 5.5977%   = 10076

Common stock = 255000 x 5.5977%  = 14274

Total participating dividend                  = 24350

You might be interested in
A customer buys shares of a stock that had its initial public offering 5 years ago. Which statement is TRUE regarding prospectus
Luda [366]

Answer:

A prospectus is not required because the initial public offering happened 5 years ago

Explanation:

A prospectus is a legal document which is to be filled by Securities and Exchange Commission (SEC) that reflects the details with respect to the investment offering to the public in terms of stocks, bond, mutual funds, etc

On the other hand the initial public offering is the offering done by the company for the first time to the public related to the investment

Since in the question it is mentioned that the customer purchased the shares of stock but its initial public offering is done 5 years ago so no prospectus is required

3 0
3 years ago
What are the basic element of selection of profession describe any two of them​
Lilit [14]

Answer:

• A professional makes deliberate choices where others have choices made for them or they simply react to what comes their way.

° A professional is afforded the luxury of making deliberate choices because he has made deliberate preparations.

•A professional can make deliberate preparations because his understanding of and familiarity with the relevant (professional) landscape informs him on how to prepare. Also, like the chess master, he is trained to understand the inevitable results of hundreds of different patterns; he has disciplined himself to observe the whole board and not just the most immediate features or the area with the most tension in the game.

•A professional is seldom caught off-balance. The discipline for deliberate preparation and the understanding that comes with it allow that even when something unexpected or unfamiliar is introduced, a professional can quickly understand its basis and easily extrapolate the appropriate tactic, strategy, or process for ethically and successfully resolving issues.

•In this capacity, and most fundamentally, a professional habitually makes the right choices because all of his choices are based on the integrity provided by his moral and ethical foundation. Any choice of expedience over integrity can quite easily be recognized by anyone as the wrong choice. Here, the professional simply acknowledges what is obvious, makes the right choice, and acts deliberately (and now we're back at the start of this list).

8 0
2 years ago
ANSWER ALL MULTIPLE CHOICE QUESTIONS 1. The index used to measure inflation is the a. consumer price index. b. producer price in
9966 [12]

Answer:

15

Explanation:

15151515151515152515255151251512512

5 0
2 years ago
If an employer does not offer a retirement plan, what might be another way to save for retirement? ATraditional IRA
asambeis [7]
The answer to this question is C. 401k Plan
In 401k plan, employees could automatically deduct some part of their earning to be allocated to their retirement fund.
This deducted earning are considered pre-tax, so the total tax that employees will have to pay is based on the amount of the earning after the deduction.
7 0
2 years ago
Read 2 more answers
What human relations skills is most clearly related to communication?
Wewaii [24]
The answer is Hearing. On the off chance if the mouth is open, the ears cannot listen. Hearing and talking go as an inseparable unit, on the off chance that you cannot talk no one can comprehend what you need either. 

I hope this helped ^_^ 
4 0
3 years ago
Other questions:
  • Presto company purchased equipment and these costs were incurred: cash price $65,000 sales taxes 3,600 insurance during transit
    10·1 answer
  • In 2014, Apple purchased Beats Electronics for billion USD. While Apple valued the product portfolio of Beats, its primary aim w
    9·1 answer
  • g Select one: a. Capital budgeting analysis for expansion and replacement projects is essentially the same because the types of
    10·1 answer
  • The potential benefits lost by taking a specific action when two or more alternative choices are available is known as a(n):____
    12·1 answer
  • For the month of July, Jacobs Company incurs a direct materials cost of $6,000 for 6,000 gallons of paint produced in its Mixing
    12·1 answer
  • Grover Company has the following data for the production and sale of 1,900 units. Sales price per unit $ 950 per unit Fixed cost
    9·1 answer
  • Medical Products Inc. has just developed a new home examination kit that allows customers to perform most of the functions a doc
    5·1 answer
  • List A List B 1. Interest a. First cash flow occurs one period after agreement begins 2. Monetary asset b. The rate at which mon
    7·1 answer
  • In April 2013, Sparkle Enterprises purchased the Crimson Mine at a cost of $18,000,000. The mine is estimated to contain 500,000
    7·1 answer
  • Which of these would be considered an entrepreneur?
    9·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!