QUESTION 19

1. ABC company has two classes of stock: A preferred that has a market value of $125 per share and a par value of $100, with a 6%cumulativedividend, 10000 shares issued and outstanding. A common stock that was issued at $20 per share, no par value, 50000 shares issued and outstanding.
2. ABC paid cash dividends of $75000 in 2007, $50,000 in 2008, and $80,000 in 2009. For 2007 indicate how much of the dividend the Preferred shareholders and common shareholders received. In 2007
3. A.Preferred 60,000, Common 15,000
4. B.Preferred 75,000, Common 0
5. C.Preferred 10,000 Common 65,000
6. D.Preferred 50,000 Common 15,000

3.3335 points

QUESTION 20

1. Olga Sorescu Company uses the average cost method to account for lawn chair inventory and has the following activity during the month of March, 2009.
2. Units
3. Unit cost
4. Beginning inventory
5. 100
6. 9.00
7. Purchase #1
8. 250
9. 10.00
10. Purchase #2
11. 50
12. 8.00
14. During March, Olga Sorescu sold 194 units. Compute the cost of goods sold for March.
15. What was the cost of goods sold in March 2009?
16. A.$1920
17. B.$1700
18. C.$2046
19. D.$1843

3.3335 points

QUESTION 21

1. Dilution of a company's common shareholders usually refers to: (one answer)
2. A.More common shares are issued during the year
3. B.A company's income increases during the year and it pays a dividend
4. C.A company's income decreases during the year
5. D.The company issues more preferred stock to the public
6. E.None of the above