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Question
A company was organized in January 2012 and has 2,000 shares of $100 par value, 10%, nonparticipating preferred stock outstanding and 30,000 shares of $10 par value common stock outstanding. It has declared and paid cash dividends each year as shown below. Calculate the total dividends distributed to each class of stockholder under each of the assumptions given.
| Assuming Preferred | Assuming Preferred | ||||
| Stock | Stock | ||||
| Cash | Is Noncumulative | Is Cumulative | |||
| Dividends | |||||
| Declared | Preferred | Common | Preferred | Common | |
| Year | and Paid | Dividend | Dividend | Dividend | Dividend |
| 2012 | $15,000 | ________ | ________ | ________ | ________ |
| 2013 | $36,000 | ________ | ________ | ________ | ________ |
| 2014 | $60,000 | ________ | ________ | ________ | ________ |
Answer
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Related questions
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Although a fixed budget is only useful over the relevant range of operations, a flexible budget is useful over all possible production levels.
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A fixed budget performance report never provides useful information for evaluating variances.
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Use the following information to prepare a budgeted income statement for Arbor Company for the month of June.
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b. Cash receipts from sales: 40% is collected in the month of sale, 50% in the next month, and 10% in the second month after sale (uncollectible accounts are negligible and can be ignored). Sales amounts are: April (actual), $1,450,000, May (actual), $1,600,000, and June (budgeted), $1,700,000.
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Use the following information to prepare the June cash budget for Arbor Company. It should show expected cash receipts and cash disbursement for the month and the cash balance expected on June 30.
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Q:
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