The outstanding share capital of Flint Corporation consists of 3,300 shares of preferred and 7,400 common shares
Question:
The outstanding share capital of Flint Corporation consists of 3,300 shares of preferred and 7,400 common shares for which $281,200 was received. The preferred shares carry a dividend of $7 per share and have a $100 stated value.
Assuming that the company has retained earnings of $105,500 that is to be entirely paid out in dividends and that preferred dividends were not paid during the 2 years preceding the current year, state how much each class of shares should receive if the preferred shares are non-cumulative and non-participating.
Preferred | Common | Total | ||||
---|---|---|---|---|---|---|
Dividends | $enter a dollar amount | $enter a dollar amount | $enter a dollar amount |
Assuming that the company has retained earnings of $105,500 that is to be entirely paid out in dividends and that preferred dividends were not paid during the 2 years preceding the current year, state how much each class of shares should receive if the preferred shares are cumulative and non-participating.
Preferred | Common | Total | ||||
---|---|---|---|---|---|---|
Dividends | $enter a dollar amount | $enter a dollar amount | $enter a dollar amount |
Assuming that the company has retained earnings of $105,500 that is to be entirely paid out in dividends and that preferred dividends were not paid during the 2 years preceding the current year, state how much each class of shares should receive if the preferred shares are cumulative and participating. (Round answers to 0 decimal places, e.g. 5,275.)
Preferred | Common | Total | ||||
---|---|---|---|---|---|---|
Dividends | $enter a dollar amount rounded to 0 decimal places | $enter a dollar amount rounded to 0 decimal places | $enter a dollar amount rounded to 0 decimal places |
Assume that Flint’s current year net income was $93,000. Calculate the current year payout ratio under each of the conditions below. (Round answers to 2 decimal places, e.g. 52.75.)
Payout Ratio | ||||
---|---|---|---|---|
(a) | The preferred shares are non-cumulative and non-participating. | enter payout ratio rounded to 2 decimal places | ||
(b) | The preferred shares are cumulative and non-participating. | enter payout ratio rounded to 2 decimal places | ||
(c) | The preferred shares are cumulative and participating. | enter payout ratio rounded to 2 decimal places |
Fundamental Accounting Principles Volume II
ISBN: 978-1260305838
16th Canadian edition
Authors: Kermit Larson, Tilly Jensen, Heidi Dieckmann