Skinner Company began business on June 30, 2007. At that time, it issued 18,000 shares of ($

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Skinner Company began business on June 30, 2007. At that time, it issued 18,000 shares of \(\$ 50\) par value, \(6 \%\) cumulative preferred stock and 90,000 shares of \(\$ 10\) par value common stock. Through the end of 2009 , there has been no change in the number of preferred and common shares outstanding.

a. Assume that Skinner declared and paid cash dividends of \(\$ 63,000\) in 2007, \(\$ 0\) in 2008, and \(\$ 378,000\) in 2009 . Compute the total cash dividends and the dividends per share paid to each class of stock in 2007. 2008, and 2009.

b. Assume that Skinner declared and paid cash dividends of \(\$ 0\) in 2007, \(\$ 108,000\) in 2008, and \(\$ 189,000\) in 2009 . Compute the total cash dividends and the dividends per share paid to each class of stock in 2007,2008 , and 2009 .

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Financial Accounting For MBAs

ISBN: 9781934319345

4th Edition

Authors: Peter D. Easton, John J. Wild, Robert F. Halsey, Mary Lea McAnally

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