The records of Hoffman Company reflected the following balances in the stockholders equity accounts at December 31, 2018:

Common stock, par $12 per share, 40,000 shares outstanding.

Preferred stock, 8 percent, par $10 per share, 6,000 shares outstanding.

Retained earnings, $220,000.

On January 1, 2019, the board of directors was considering the distribution of a $62,000 cash dividend. No dividends were paid during 2017 and 2018.

Required:

1. Determine the total and per-share amounts that would be paid to the common stockholders and to the preferred stockholders under two independent assumptions:

1. The preferred stock is noncumulative.
2. The preferred stock is cumulative.

View previous The records of Hoffman Company reflected the following balances in the stockholders' equity accounts at December 31, 2018: points Common stock, par $12 per share, 40,000 shares outstanding. Preferred stock, 8 percent, par $10 per share, 6,000 shares outstanding. Retained earnings, $220,000. eBook Print On January 1, 2019, the board of directors was considering the distribution of a $62,000 cash dividend. No dividends were paid during 2017 and 2018. References Required: 1. Determine the total and per-share amounts that would be paid to the common stockholders and to the preferred stockholders under two independent assumptions: a. The preferred stock is noncumulative. b. The preferred stock is cumulative. 2. Why were the dividends per share of common stock less for the cumulative preferred stock than the noncumulative preferred stock? 3. What factors would cause a more favorable dividend for the common stockholders? Complete this question by entering your answers in the tabs below. Req 1A Req 1B Req 2 Reg 3 Determine the total and per-share amounts that would be paid to the common stockholders and to the preferred stockholders assuming the preferred stock is noncumulative. (Round "Per Share" to 2 decimal places.) Per Share Total 4,800 | $ $ 0.80 Paid to the Preferred Stockholders Paid to the Common Stockholders Dec 11 Reg 1RX Complete this question by entering your answers in the tabs below. Req 1A Reg 1B Req 2 Req 3 Determine the total and per-share amounts that would be paid to the common stockholders and to the preferred stockholders assuming the preferred stock is cumulative. (Do not round intermediate instructions. Round "Per Share" to 2 decimal places.) Total 14,400 Per Share $ 2.40 | $ Paid to the Preferred Stockholders Paid to the Common Stockholders