2 E11-10 Computing Dividends on Preferred Stock and Analyzing Differences (LO 11-3, LO 11-4 The records of Hoffiman Company reflected the following balances in the stockholders' equity accounts at December 31, 2018 25 Connon stoek, per $12 par shere.48.500 shares outstand i Preferred "toek. percent, par 816.5 per share 7,610 shares outstanding. Retained earnings, $237,000 uary 1, 2019, the board of directors was considering the distribution of a $63,700 cash dividend. No dividends were paid during 2017 and 2018. Required: 1 Determine the total and per-share amounts that would be paid to the common stockholders and to the preferred stockholders References under two independent assumptions: a. The preferred stock is noncumulative. b. The preferred stock is cumulative. were the dividends per share of common stock less for the cumulative preferred stock than the noncumulative preferred stock? 3. What factors would cause a more favorable dividend for the common stockholders? Complete this question by entering your answers in the tabs below b. The preferred stock is cumulative. 2. Why were the dividends per share of common stock less for the cumulative preferred stock than the noncumulative preferred stock? cause a more favorable dividend for the common stockholders? Answer Is complete but not entirely correct. Complete this question by entering your answers In the tabs below. Req 18 Req 1A Req 2 Req 3 Determine the total and per-share amounts that would be paid to the common stockholders and to the preferred assuming the preferred stock is noncumulative. (Round "Per Share" to 2 decimal places and rest to the nearest dollar 0045 1.00 56,090 S 1.16 Stockhoiders Paid to the Common Stockholders K Prev 2 of 4 Next > Return to question 2 a. The preferred stock is noncumulative. b. The preferred stock is cumulative. 2. Why were the dividends per share of common stock less for the cumulative preferred stock than the noncumulative preferred 3. What factors would cause a more favorable dividend for the common stockholders? stock? 5 O Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Req 1A Req 18 Req 2 Req 3 Determine the total and per-share amounts that would be paid to the common stockholders and to the preferred stockholders assuming the preferred stock is cumulative. (Do not round intermediate instrfactions. Round "Per Share" to 2 decimal placers and rest to the nearest dollar amount.) 0,136 s 100 6,090$ 7,610.00 Paid to the Common Req 2 >