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The Lily Peng Company has a capitalization of 1 5 , 0 0 0 , $ 1 . 6 0 no par value preferred shares

The Lily Peng Company has a capitalization of 15,000, $1.60 no par value preferred shares and 30,000 no par value common shares. All of the authorized shares have been issued. The preferred shares at $20.00 per share and the common at $30.00 per share. On December 31,20X2 there were no dividends in arrears. During the five following years the company's dividends declaration were as follows:
Under each of the following assumptions complete the schedule below, which shows the amounts of dividends for each of the two classes of shares.
Use Chart below to Answer.s 1.
The Preferred Shares are Noncumulative & Nonparticipating
Year
Total
Dividends
Preferred
Shares
Common
Shares
20X3
$
18,000
20X4
$
96,000
20X5
$ 108,000
20X6
$
21,000
20X7
$ 126,000
This Examinalion Has Been Prepared by the House of Timuin and Subject to Copy Right Laws. Unauthorized Copying, Downioading, Distribution of transmission in Strially ProhibitedE
2
The Preferred Shares are cumulative & nonparticipating
Year
Total
Dividends
Preferred
Shares
Common
Shares
20X3
$
18,000
20X4
$ 96,000
20X5
$ 108,000
20X6
$
21,000
20X7
$ 126,000
The Preferred Shares are noncumulative & participating
Year
Total
Dividends
Preferred
Shares
Common
Shares
20X3
$
18,000
20X4
$
96,000
20X5
$ 108,000
20X6
$ 21,000
20X7
$ 126,000
The Preferred Shares are Cumulative & Participating
Year
Total
Dividends
Preferred
Shares
Common
Shares
20X3
$
18,000
20X4
$
96,000
20X5
$ 108,000
20X6
$ 21,000
20X7
$ 126,000
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