Exercise 11-11 The following financial information is available for Riverbed Corporation (in millions) 2017 2016 $3,340 $3,410 Average common stockholders' equity 315 Dividends declared for common stockholders 650 40 40 Dividends declared for preferred stockholders 595 640 Net income Calculate the payout ratio and return on common stockholders' equity ratio for 2017 and 2016. (Round answers to 1 decimal place, e.g. 12.5%) 2017 2016 % Payout ratio Return on common stockholders' ity Problem 11-2A (Part Level Submission) The stockholders' equity accounts of Ayayai Corp. on January 1, 2017, were as follows. Preferred Stock (6%, $100 par noncumulative, 5,000 shares authorized) $300,000 Common Stock ($4 stated value, 300,000 shares authorized) 1,000,000 Paid-in Capital in Excess of Par Value-Preferred Stock 15,000 Paid-in Capital in Excess of Stated Value-Common Stock 480,000 Retained Earnings 678,000 Treasury Stock (5,000 common shares) 40,000 During 2017, the corporation had the following transactions and events pertaining to its stockholders' equity Feb Issued 5,000 shares of common stock for $30,000. 1 Mar. 20 Purchased 1,000 additional shares of common treasury stock at $7 per share. Oct. Declared a 6% cash dividend on preferred stock, payable November 1. 1 Nov Paid the dividend declared on October 1. 1 Dec. 1 Declared a $0.40 per share cash dividend to common stockholders of record on December 15, payable December 31, 2017. Determined that net income for the year was $275,000. Paid the dividend declared on December 1 Dec. 31 (a) Cash 30000 Feb. 1 Common Stock 20000 10000 Paid-in Capital in Excess of Par Value-Common St 9000 Mar. 20 Treasury Stock 9000 Cash Cash Dividends 18000 Oct. 1 Dividends Payable 18000 Dividends Payable 18000 Nov. 1 Cash 18000 Dec. 1 Common Stock Dividends Distributable 112050 Dividends Payable 112050 Dividends Payable 130050 Dec. 31 PE 112050 Cash (To record net income) Retained Earnings Dec. 31 18000 Common Stock Dividends Distributable (To close cash dividends) Dec. 31 Income Summary Retained Earnings (To record payment of cash dividends payable)