DigiCom reported net income during five successive years as follows: 2015, $49,000; 2016, $65,000; 2017, $9,000;...
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DigiCom reported net income during five successive years as follows: 2015, $49,000; 2016, $65,000; 2017, $9,000; 2018, $10,000; 2019, $62,000. The share capital consisted of 20,000, no-par common shares, and 27,000, $0.40 no-par preferred shares. Prepare a schedule showing the amount each share class would receive in dividends if the entire net income amount was distributed each year. Please make sure your final answer(s) are accurate to 2 decimal places. Case A Case B Case с year total 2015 2016 2017 2018 2019 Preferred shares are cumulative and non-participating. Preferred shares are cumulative and fully participating; the matching dividend for common shares is $1.70 per share. Preferred shares are non-cumulative and fully participating; the matching dividend for common shares is $1.70 per share. CASE A CASE B total distributed preferred common preferred common preferred 49,000.00 10,800.00 38,200.00 11,812.50 37,187.50 11,812.50 65,000.00 10,800.00 54,200.00 15,669.64 49,330.36 15,669.64 9,000.00 9,000.00 9,000.00 9,000.00 10,000.00 10,000.00 10,000.00 10,000.00 62,000.00 13,400.00 48,600.00 16,919.64 45,080.36 14,946.43 47,053.57 195,000.00 54,000.00 141,000.00 63,401.78 131,598.22 61,428.57 133,571.43 CASE C common 37,187.50 49,330.36 DigiCom reported net income during five successive years as follows: 2015, $49,000; 2016, $65,000; 2017, $9,000; 2018, $10,000; 2019, $62,000. The share capital consisted of 20,000, no-par common shares, and 27,000, $0.40 no-par preferred shares. Prepare a schedule showing the amount each share class would receive in dividends if the entire net income amount was distributed each year. Please make sure your final answer(s) are accurate to 2 decimal places. Case A Case B Case с year total 2015 2016 2017 2018 2019 Preferred shares are cumulative and non-participating. Preferred shares are cumulative and fully participating; the matching dividend for common shares is $1.70 per share. Preferred shares are non-cumulative and fully participating; the matching dividend for common shares is $1.70 per share. CASE A CASE B total distributed preferred common preferred common preferred 49,000.00 10,800.00 38,200.00 11,812.50 37,187.50 11,812.50 65,000.00 10,800.00 54,200.00 15,669.64 49,330.36 15,669.64 9,000.00 9,000.00 9,000.00 9,000.00 10,000.00 10,000.00 10,000.00 10,000.00 62,000.00 13,400.00 48,600.00 16,919.64 45,080.36 14,946.43 47,053.57 195,000.00 54,000.00 141,000.00 63,401.78 131,598.22 61,428.57 133,571.43 CASE C common 37,187.50 49,330.36
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Fundamental Managerial Accounting Concepts
ISBN: 978-0078025655
7th edition
Authors: Thomas Edmonds, Christopher Edmonds, Bor-Yi Tsay, Philip Old
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