On September 1, 2018, the board of directors was considering the distribution of a $73,280 cash dividend. No dividends were paid during 2013 and 2017. You have been asked to determine dividend amounts under two independent assumptions (show computations): a. The preferred shares are non-cumulative. b. The preferred shares are cumulative. Required: 1. Determine the total amounts that would be paid to the preferred shareholders and to the common shareholders under the two independent assumptions. (Round "Per share" to 2 decimal places.) Preferred Common |Noncumulative: %24 58,080 15,200 S 2.00S Total Per share 1.21 b. Cumulative:

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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The records of Hoffman Company reflected the following balances in the shareholders'
equity accounts at December 31, 2017:
Common shares, no par value, 48,000 shares
outstanding
Preferred shares, $2, no par value, 7,600 shares
outstanding
Retained earnings
$960,000
159,000
253,000
On September 1, 2018, the board of directors was considering the distribution of a
$73,280 cash dividend. No dividends were paid during 2013 and 2017. You have been
asked to determine dividend amounts under two independent assumptions (show
computations):
a. The preferred shares are non-cumulative.
b. The preferred shares are cumulative.
Required:
1. Determine the total amounts that would be paid to the preferred shareholders and to
the common shareholders under the two independent assumptions. (Round "Per
share" to 2 decimal places.)
Preferred
Common
a. Noncumulative:
Total
15,200 s
58,080
Per share
2.00 S
1.21
b. Cumulative:
Transcribed Image Text:The records of Hoffman Company reflected the following balances in the shareholders' equity accounts at December 31, 2017: Common shares, no par value, 48,000 shares outstanding Preferred shares, $2, no par value, 7,600 shares outstanding Retained earnings $960,000 159,000 253,000 On September 1, 2018, the board of directors was considering the distribution of a $73,280 cash dividend. No dividends were paid during 2013 and 2017. You have been asked to determine dividend amounts under two independent assumptions (show computations): a. The preferred shares are non-cumulative. b. The preferred shares are cumulative. Required: 1. Determine the total amounts that would be paid to the preferred shareholders and to the common shareholders under the two independent assumptions. (Round "Per share" to 2 decimal places.) Preferred Common a. Noncumulative: Total 15,200 s 58,080 Per share 2.00 S 1.21 b. Cumulative:
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