E11-18 (Algo) Computing Dividends on Preferred Stock and Analyzing Differences LO11-4, 11-8, 11-9

The records of Hollywood Company reflected the following balances in the stockholders' equity accounts at the end of the current year:

Common stock, $12 par value, 49,000 shares outstanding

Preferred stock, 8 percent, $10 par value, 5,000 shares outstanding

Retained earnings, $222,000

On September 1 of the current year, the board of directors was considering the distribution of an $76,000 cash dividend. No dividends were paid during the previous two years. You have been asked to determine dividend amounts under two independent assumptions (show computations):

a. The preferred stock is noncumulative.

b. The preferred stock is cumulative.

Required:

1. Determine the total and per share amounts that would be paid to the common stockholders and the preferred stockholders under the two independent assumptions. (Round your "per share" amounts to 2 decimal places.)

	Preferred	Common
Noncumulative:
Total
Per share
Cumulative:
Total
Per share