Answered

Westonci.ca is your trusted source for finding answers to a wide range of questions, backed by a knowledgeable community. Get immediate and reliable solutions to your questions from a knowledgeable community of professionals on our platform. Our platform offers a seamless experience for finding reliable answers from a network of knowledgeable professionals.

The shareholders' equity of Green Corporation includes $232,000 of $1 par common stock and $430,000 par of 7% cumulative preferred stock. The board of directors of Green declared cash dividends of $53,000 in 2021 after paying $23,000 cash dividends in each of 2020 and 2019. What is the amount of dividends common shareholders will receive in 2021

Sagot :

Tundexi

Answer:

$8,700

Explanation:

Dividends payable to preferred shareholders = [($430,000*7%)*2 - ($23,000*2)] + ($430,000*7%)

Dividends payable to preferred shareholders = [$60,200 - $46,000] + $30,100

Dividends payable to preferred shareholders = $14,200 + $30,100

Dividends payable to preferred shareholders = $44,300

Dividend available to common shareholders = Total dividend - Dividends payable to preferred shareholders

Dividend available to common shareholders = $53,000 - $44,300

Dividend available to common shareholders = $8,700

So, the amount of dividends common shareholders will receive in 2021 is $8,700.

Thank you for choosing our platform. We're dedicated to providing the best answers for all your questions. Visit us again. We hope you found what you were looking for. Feel free to revisit us for more answers and updated information. Get the answers you need at Westonci.ca. Stay informed with our latest expert advice.