Analyzing Cash Dividends on Preferred and Common Stock Potter Company has outstanding 10,000 shares...
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Accounting
- Analyzing Cash Dividends on Preferred and Common Stock
Potter Company has outstanding 10,000 shares of $50 par value, 6% preferred stock and 80,000 shares of $5 par value common stock. During its first three years in business, it declared and paid no cash dividends in the first year, $240,000 in the second year, and $100,000 in the third year.
- If the preferred stock is cumulative, determine the total amount of cash dividends paid to each class of stock in each of the three years.
| Preferred Stock Dividend | Common Stock Dividend | |
| Year 1 | ||
| Year 2 | ||
| Year 3 |
Show your calculations:
(b) If the preferred stock is noncumulative, determine the total amount of cash dividends paid to each class of stock in each of the three years.
| Preferred Stock Dividend | Common Stock Dividend | |
| Year 1 | ||
| Year 2 | ||
| Year 3 |
Show your calculations:
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