The following elements of shareholders equity are adapted from the
The following elements of shareholders’ equity are adapted from the balance sheet of Scribner Corporation.
Shareholders’ Equity $ Thousands
Preferred Shares, cumulative, $0.40, 50,000 shares issued
and outstanding .................. $100
Common Shares, 9,000,000 shares issued and outstanding .. 900
Scribner Corporation paid no preferred dividends in 2014 but paid the designated amount of cash dividends per share to preferred shareholders in all prior years.
Requirement
Compute the dividends to preferred and common shareholders for 2015 if total dividends are $150,000.
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