The Magic Flute Company paid cash dividends totaling $ 330,000 in 2016 and $ 185,000 in 2017. In 2018, the company will pay cash dividends of $ 955,000. There were no dividends in arrears as of January 1, 2016. There are 27,000 shares of common stock outstanding and 70,000 shares of 6 percent, $100 par cumulative preferred stock outstanding. What is the amount of cash dividends payable to common stockholders in 2018?

Answer rating: 100% (QA)

Since the preferred stock is cumulative any unpaid dividends from prior years must be paid before co... View the full answer