At December 31, 2017, Carlos Company had the following Retained Earnings and shares outstanding:
Common shares (490,000 outstanding shares)………………………………….$490,000
Preferred shares (8%; 19,000 outstanding shares)………………………………190,000
Retained earnings……………………………………………………………………………….966,000
On December 31, 2017, the board of directors considered the of a cash to the common and preferred shareholders. No dividends were declared during 2015 or 2016. Three independent cases are assumed:
Case A: The preferred shares are non-cumulative; the total amount of 2017 dividends would be $24,000.
Case B: The preferred shares are cumulative; the total amount of 2017 dividends would be $24,000. Dividends were not in arrears prior to 2015.
Case C: Same as Case B, except the amount is $67,000.
Required:
Compute the amount of 2017 dividends, in total and per share, payable to each class of shareholders for each case. Show computations. Round per-share amounts to two decimal places.
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