The shareholders equity section of Mayberry Corporation, as of the end of 2021, follows. Mayberry began operations
Question:
The shareholders’ equity section of Mayberry Corporation, as of the end of 2021, follows. Mayberry began operations in 2017. The 5,000 shares of preferred stock have been outstanding since 2017.
| Preferred stock (10,000 shares authorized, 5,000 issued, $5 dividends, $10 par value) | $50,000 |
Common stock (500,000 shares authorized, 200,000 issued, 50,000 held in treasury, no par value) | 1,600,000 |
Additional paid-in capital | 140,000 |
Retained earnings | 110,000 |
Less: Treasury stock | (80,000) |
Total shareholders’ equity | $1,820,000 |
The company has paid the following total cash dividends since 2017:
2017 | $0 |
2018 | 30,000 |
2019 | 80,000 |
2020 | 15,000 |
2021 | 40,000 |
SKIP Part a
- Compute the dividends paid to the preferred and common shareholders for each of the years since 2017 assuming that missed preferred dividends never have to be paid in future years.
- Repeat (a) but assume that missed preferred dividends must be paid first in future years when dividends are declared.
What amount is the dividends paid to the preferred shareholders for the year 2018 assuming that missed preferred dividends must be paid first in future years when dividends are declared?
What amount is the dividends paid to the preferred shareholders for the year 2019 assuming that missed preferred dividends must be paid first in future years when dividends are declared?
What amount is the dividends paid to the preferred shareholders for the year 2020 assuming that missed preferred dividends must be paid first in future years when dividends are declared?
What amount is the dividends paid to the preferred shareholders for the year 2021 assuming that missed preferred dividends must be paid first in future years when dividends are declared?
What amount is the dividends paid to the common shareholders for the year 2018 assuming that missed preferred dividends must be paid first in future years when dividends are declared?
What amount is the dividends paid to the common shareholders for the year 2019 assuming that missed preferred dividends must be paid first in future years when dividends are declared?
What amount is the dividends paid to the common shareholders for the year 2021 assuming that missed preferred dividends must be paid first in future years when dividends are declared?
