Mercury Motors has 20,000 shares of 6%, $50 par value, cumulative preferred stock. The preferred stock...

Transcribed Image Text:

Mercury Motors has 20,000 shares of 6%, $50 par value, cumulative preferred stock. The preferred stock had been issued in 2012 and is still outstanding at year-end December 2021. As of the December 2015 year-end, there were no preferred dividends in arrears. Since January 2016, the board of directors declared annual dividends as follows: Total Declaration Dividends Date Declared January $50,000 2016 January $75,000 2017 January $45,000 2018 $0 (no January dividends 2019 declared) January $75,000 2020 January $75,000 2021 Based on the dividend schedule shown above, what is the cumulative amount of dividends that should have been paid to the Common Stockholders for the years 2016-2021? Note that Mercury Motors uses the calendar year as its fiscal year. Check Sum: Total Dividends Declared: $320,000 Continuing with Mercury Motors, what is the amount of dividends in arrears at the end of 2021? Assume that no dividends are declared after January 2021. Mercury Motors has 20,000 shares of 6%, $50 par value, cumulative preferred stock. The preferred stock had been issued in 2012 and is still outstanding at year-end December 2021. As of the December 2015 year-end, there were no preferred dividends in arrears. Since January 2016, the board of directors declared annual dividends as follows: Total Declaration Dividends Date Declared January $50,000 2016 January $75,000 2017 January $45,000 2018 $0 (no January dividends 2019 declared) January $75,000 2020 January $75,000 2021 Based on the dividend schedule shown above, what is the cumulative amount of dividends that should have been paid to the Common Stockholders for the years 2016-2021? Note that Mercury Motors uses the calendar year as its fiscal year. Check Sum: Total Dividends Declared: $320,000 Continuing with Mercury Motors, what is the amount of dividends in arrears at the end of 2021? Assume that no dividends are declared after January 2021.

Answer rating: 100% (QA)

To calculate the dividends in arrears for the cumulative preferred stock of Mercury Motors we need t... View the full answer