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Homework answers / question archive / Infomatics, Inc
Infomatics, Inc. has 60,000 shares of $3 par value common stock and 9,000 shares of 8%, $20 par value preferred stock outstanding at December 31, 2020. On January 1, 2021, the board of directors declares a $71,000 dividend. No dividends were paid in 2019 or 2020 Determine the amount of the $71,000 dividend that will be paid to the preferred stockholders and to the common stockholders in 2021 under two independent assumptions: 1. The preferred stock is noncumulative. 2. The preferred stock is cumulative. Dividend Paid to Preferred Stockholders Dividend Paid to Common Stockholders 1 Preferred stock is noncumulative 2 Preferred stock is cumulative
| Dividend paid to | Dividend paid to | ||
| Preferred Stockholders | Common Stockholders | ||
| 1 | Preferred stock is non cumulative | 14400 | 56600 |
| 2 | Preferred stock is cumulative | 43200 | 27800 |
| (14400*3) | |||
| Dividend to Preferred Shareholders for one year | 9000*20*8% | 14400 |
