At December 31, the records of Nortech Corporation provided the following selected and incomplete data Common stock (par $1; no changes during the current year) Shares authorized, 500,000. Shares issued, 2; issue price $20 per share. Common Stock account, $180,000. Shares held as treasury stock, 2,800 shares, cost $18 per share. Net income for the current year, $115,180. Dividends declared and paid during the current year, $40,756. Retained Earnings balance, beginning of the year, $153,000 Required Complete the following: TIP: To determine the number of shares issued, divide the balance in the Common Stock account by the par value per share. (Round "per share" answers to 2 decimal places.) 1-a. Shares Authorized 1-b. Shares Issued 1-c. Shares Outstanding The Balance in Additional Paid-in Capital would be 2. 3. Earnings per Share is 4 Dividends Paid per Share of Common Stock is 5 Treasury Stock should be Reported in the Stockholders' Equity Section of the Balance Sheet in the Amount of Assume that the Board of Directors Approved a 2-for-1 Stock Split. After the Stock Split, the Par Value per Share will be Tower Corp. had the following stock outstanding and Retained Earnings at December 31, 2018 Common Stock (par $8; outstanding, 21,000 shares) Preferred stock, 9% (par $10; outstanding, 5,100 shares) Retained Earnings $ 168,000 51,000 271,000 On December 31, 2018, the board of directors is considering the distribution of a cash dividend to the common and preferred stockholders. No dividends were declared during 2016 or 2017, and none have been declared yet in 2018. Three independent cases are assumed Case A The preferred stock is noncumulative; the total amount of 2018 dividends Case B The preferred stock is cumulative; the total amount of 2018 dividends would Case C Same as Case B, except the total dividends are $57,000. Required: 1-a. Compute the amount of 2018 dividends, in total that would be payable to each class of stockholders if dividends were declared as would be $11,700 be $13,770. Dividends were not in arrears prior to 2016. described in each case. TIP: Preferred stockholders with cumulative dividends are to be paid dividends for any prior years (in arrears) and for the current year before common stockholders are paid 1-b. Compute per case, the 2018 dividends per share, payable to each class of stockholders Complete this question by entering your answers in the tabs below. Req 1A Req 1B Compute the amount of 2018 dividends, in total that would be payable to each class of stockholders if dividends were declared as described in each case. TIP: Preferred stockholders with cumulative dividends are to be pald dividends for any prior years (in arrears) and for the current year before common stockholders are paid Case A Case B Case C Preferred Common Total Case A Case B Case C Preferred (per share) Common (per share)
