Question 1

Analyzing Cash Dividends on Preferred and Common Stock Torres Company began business on June 30, 2018. At that time, it issued 35,000 shares of $40 par value, 8% cumulative preferred stock and 140,000 shares of $5 par value common stock. Through the end of 2020, there has been no change in the number of preferred and common shares outstanding. a. Assume the company declared and paid cash dividends of $144,200 in 2018, $0 in 2019, and $645,400 in 2020. Compute the total cash dividends and the dividends per share paid to each class of stock in 2018, 2019, and 2020.

2018	Total Dividends	Dividends per Share
Preferred shareholders:	Answer	Answer
Common shareholders:	Answer	Answer

2019	Total Dividends	Dividends per Share
Preferred shareholders:	Answer	Answer
Common shareholders:	Answer	Answer

2020	Total Dividends	Dividends per Share
Preferred shareholders:	Answer	Answer
Common shareholders:	Answer	Answer

b. Assume the company declared and paid cash dividends of $0 in 2018, $224,000 in 2019, and $389,200 in 2020. Compute the total cash dividends and the dividends per share paid to each class of stock in 2018, 2019, and 2020.

2018	Total Dividends	Dividends per Share
Preferred shareholders:	Answer	Answer
Common shareholders:	Answer	Answer

2019	Total Dividends	Dividends per Share
Preferred shareholders:	Answer	Answer
Common shareholders:	Answer	Answer

2020	Total Dividends	Dividends per Share
Preferred shareholders:	Answer	Answer
Common shareholders:	Answer	Answer