Calculate the cash dividends

  

1 Company name: Cypress Inc. You are the accountant for Cypress Inc. and need to determine how the cash dividends declared by Cypress's board of directors should be allocated between the corporation's common and preferred stockholders. 2 4 Data Cypress Inc. is authorized to issue 160,000 shares of $0.40 par value common stock and 250,000 shares of $6.20 par value, 3.5%, preferred stock. It currently has 45,000 shares of common stock and 96,000 shares of preferred stock issued and outstanding. 5 6 The declared dividend amount for each year is included in the work area templates. 19 Required: 20 Start by calculating the preferred stock annual dividend, then use the templates provided below 26 Calculate the preferred stock annual dividend 27 Assume preferred stock is NON-cumulative 28 Year 29 30 31 32 33 34 1234 Dividends to Dividends to Preferred Common Dividend Declared Preferred stock dividend amount* Arrearages Stockholders Stockholders 20,000 21,000 37,000 11,000