In recent years, the McFarlane Company had severe cash flow problems In 20X0, the company suspended payment of cash dividends on common stock In 20X1, it ceased payment on its $3million par value 6 cumulative preferred stock No common or preferred dividends were paid in 20X1 or 20X2 In 20X3, McFarl...

This preferred stock is cumulative so all missed preferred sto ...

In recent years, the McFarlane Company had severe cash flow problems. In 20X0, the company suspended payment

Question:

In recent years, the McFarlane Company had severe cash flow problems. In 20X0, the company suspended payment of cash dividends on . In 20X1, it ceased payment on its $3 million 6% cumulative preferred stock. No common or preferred dividends were paid in 20X1 or 20X2. In 20X3, McFarlane’s board of directors decided that $1.0 million was available for cash dividends.
Compute the preferred stock and the for 20X3.

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their... Par Value
Par value is the face value of a bond. Par value is important for a bond or fixed-income instrument because it determines its maturity value as well as the dollar value of coupon payments. The market price of a bond may be above or below par,...