Dividends Andrews Company has $80,000 available to pay dividends. It has 2,000 shares of 10%, $100 par, preferred stock and 30,000 shares of $10 par common stock outstanding. The preferred stock is selling for $100 per share, and the common stock is selling for $25 per share. Required 1. Determine the amount of dividends to be paid to each class of shareholder for each of the following independent assumptions. If an amount box required no entry, leave it blank. a. Preferred stock is nonparticipating and noncumulative. Andrews Company Schedule of dividends to be paid Preferred Common Preferred dividend $fill in the blank 662f5000306e04a_1 fill in the blank 662f5000306e04a_2 Remainder to common fill in the blank 662f5000306e04a_3 $fill in the blank 662f5000306e04a_4 Total $fill in the blank 662f5000306e04a_5 $fill in the blank 662f5000306e04a_6 b. Preferred stock is nonparticipating and cumulative. Preferred dividends are 2 years in arrears at the beginning of the year. Andrews Company Schedule of dividends to be paid Preferred Common Dividends in arrears $fill in the blank 5474f902702b078_1 $fill in the blank 5474f902702b078_2 Current preferred dividend fill in the blank 5474f902702b078_3 $fill in the blank 5474f902702b078_4 Remainder to common fill in the blank 5474f902702b078_5 fill in the blank 5474f902702b078_6 Total $fill in the blank 5474f902702b078_7 $fill in the blank 5474f902702b078_8 c. Preferred stock is fully participating and cumulative. Preferred dividends are 1 year in arrears at the beginning of the year. Andrews Company Schedule of dividends to be paid Preferred Common Dividends in arrears $fill in the blank c0cdfe03dfe300e_1 $fill in the blank c0cdfe03dfe300e_2 Current preferred dividends fill in the blank c0cdfe03dfe300e_3 fill in the blank c0cdfe03dfe300e_4 Common proportional share fill in the blank c0cdfe03dfe300e_5 fill in the blank c0cdfe03dfe300e_6 Remainder shared fill in the blank c0cdfe03dfe300e_7 fill in the blank c0cdfe03dfe300e_8 Total $fill in the blank c0cdfe03dfe300e_9 $fill in the blank c0cdfe03dfe300e_10 2. For 1(a), compute the dividend yield on the preferred stock and the common stock. Dividend yield Preferred stock fill in the blank 44108a03d05a073_1 % Common stock fill in the blank 44108a03d05a073_2 %

Dividends Andrews Company has $80,000 available to pay dividends. It has 2,000 shares of 10%, $100 par, preferred stock and 30,000 shares of $10 par common stock outstanding. The preferred stock is selling for $100 per share, and the common stock is selling for $25 per share. Required 1. Determine the amount of dividends to be paid to each class of shareholder for each of the following independent assumptions. If an amount box required no entry, leave it blank. a. Preferred stock is nonparticipating and noncumulative. Andrews Company Schedule of dividends to be paid Preferred Common Preferred dividend $fill in the blank 662f5000306e04a_1 fill in the blank 662f5000306e04a_2 Remainder to common fill in the blank 662f5000306e04a_3 $fill in the blank 662f5000306e04a_4 Total $fill in the blank 662f5000306e04a_5 $fill in the blank 662f5000306e04a_6 b. Preferred stock is nonparticipating and cumulative. Preferred dividends are 2 years in arrears at the beginning of the year. Andrews Company Schedule of dividends to be paid Preferred Common Dividends in arrears $fill in the blank 5474f902702b078_1 $fill in the blank 5474f902702b078_2 Current preferred dividend fill in the blank 5474f902702b078_3 $fill in the blank 5474f902702b078_4 Remainder to common fill in the blank 5474f902702b078_5 fill in the blank 5474f902702b078_6 Total $fill in the blank 5474f902702b078_7 $fill in the blank 5474f902702b078_8 c. Preferred stock is fully participating and cumulative. Preferred dividends are 1 year in arrears at the beginning of the year. Andrews Company Schedule of dividends to be paid Preferred Common Dividends in arrears $fill in the blank c0cdfe03dfe300e_1 $fill in the blank c0cdfe03dfe300e_2 Current preferred dividends fill in the blank c0cdfe03dfe300e_3 fill in the blank c0cdfe03dfe300e_4 Common proportional share fill in the blank c0cdfe03dfe300e_5 fill in the blank c0cdfe03dfe300e_6 Remainder shared fill in the blank c0cdfe03dfe300e_7 fill in the blank c0cdfe03dfe300e_8 Total $fill in the blank c0cdfe03dfe300e_9 $fill in the blank c0cdfe03dfe300e_10 2. For 1(a), compute the dividend yield on the preferred stock and the common stock. Dividend yield Preferred stock fill in the blank 44108a03d05a073_1 % Common stock fill in the blank 44108a03d05a073_2 %

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter15: Financial Statement Analysis

Section: Chapter Questions

Problem 66P

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Dividends

Andrews Company has $80,000 available to pay dividends. It has 2,000 shares of 10%, $100 par, preferred stock and 30,000 shares of $10 par common stock outstanding. The preferred stock is selling for $100 per share, and the common stock is selling for $25 per share.

Required

1. Determine the amount of dividends to be paid to each class of shareholder for each of the following independent assumptions. If an amount box required no entry, leave it blank.

a. Preferred stock is nonparticipating and noncumulative.

Andrews Company
Schedule of dividends to be paid

	Preferred	Common
Preferred dividend	$fill in the blank 662f5000306e04a_1	fill in the blank 662f5000306e04a_2
Remainder to common	fill in the blank 662f5000306e04a_3	$fill in the blank 662f5000306e04a_4
Total	$fill in the blank 662f5000306e04a_5	$fill in the blank 662f5000306e04a_6

b. Preferred stock is nonparticipating and cumulative. Preferred dividends are 2 years in arrears at the beginning of the year.

Andrews Company
Schedule of dividends to be paid

	Preferred	Common
Dividends in arrears	$fill in the blank 5474f902702b078_1	$fill in the blank 5474f902702b078_2
Current preferred dividend	fill in the blank 5474f902702b078_3	$fill in the blank 5474f902702b078_4
Remainder to common	fill in the blank 5474f902702b078_5	fill in the blank 5474f902702b078_6
Total	$fill in the blank 5474f902702b078_7	$fill in the blank 5474f902702b078_8

c. Preferred stock is fully participating and cumulative. Preferred dividends are 1 year in arrears at the beginning of the year.

Andrews Company
Schedule of dividends to be paid

	Preferred	Common
Dividends in arrears	$fill in the blank c0cdfe03dfe300e_1	$fill in the blank c0cdfe03dfe300e_2
Current preferred dividends	fill in the blank c0cdfe03dfe300e_3	fill in the blank c0cdfe03dfe300e_4
Common proportional share	fill in the blank c0cdfe03dfe300e_5	fill in the blank c0cdfe03dfe300e_6
Remainder shared	fill in the blank c0cdfe03dfe300e_7	fill in the blank c0cdfe03dfe300e_8
Total	$fill in the blank c0cdfe03dfe300e_9	$fill in the blank c0cdfe03dfe300e_10

2. For 1(a), compute the dividend yield on the preferred stock and the common stock.

	Dividend yield
Preferred stock	fill in the blank 44108a03d05a073_1 %
Common stock	fill in the blank 44108a03d05a073_2 %

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