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Cola Company reported net income during five successive years as follows: 2015, $34,000; 2016, $39,000; 2017, $10,000; 2018, $7,500; 2019, $64,000. The share capital consisted
Cola Company reported net income during five successive years as follows: 2015, $34,000; 2016, $39,000; 2017, $10,000; 2018, $7,500; 2019, $64,000. The share capital consisted of 23,500, no-par common shares, and 29,500, $0.40 no-par preferred shares. Prepare a schedule showing the amount each share class would receive in dividends if the entire net income amount was distributed each year. Please make sure your final answer(s) are accurate to 2 decimal places.
Case A | Preferred shares are cumulative and non-participating. | ||
Case B | Preferred shares are cumulative and fully participating; the matching dividend for common shares is $1.60 per share. | ||
Case C | Preferred shares are non-cumulative and fully participating; the matching dividend for common shares is $1.60 per share. |
year | total distributed |
2015 | |
2016 | |
2017 | |
2018 | |
2019 | |
2020 |
case a
year | preferred | common |
2015 | ||
2016 | ||
2017 | ||
2018 | ||
2019 | ||
2020 |
case b
year | preferred | common |
2015 | ||
2016 | ||
2017 | ||
2018 | ||
2019 | ||
2020 |
case c
year | preferred | common |
2015 | ||
2016 | ||
2017 | ||
2018 | ||
2019 | ||
2020 |
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