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The records of Hoffman Company reflected the following balances in the stockholders' equity accounts at December 31, 2018: Common stock, par $12 per share, 43,500

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The records of Hoffman Company reflected the following balances in the stockholders' equity accounts at December 31, 2018: Common stock, par $12 per share, 43,500 shares outstanding. Preferred stock, 8 percent, par $17 per share 6,610 shares outstanding. Retained earnings, $227,000. On January 1, 2019, the board of directors was considering the distribution of a $62,700 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: 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? Answer is not complete. Complete this question by entering your answers in the tabs below. Reg 2 Reg 3 Red IA Reg 13 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 3. What factors would cause a more favorable dividend for the common stockholders? stock? Answer is not complete. Complete this question by entering your answers in the tabs below. Red 1A Reg 1B Reg 2 Req3 Determine the total and per-share amounts that would be paid to the common stockholders and the preferred stockholders assuming the preferred stock is cumulative. (Do not round Intermediate Instructions. Round "Per Share to 2 decimal places and rest to the nearest dollar amount.) Total Per Share Paid to the Preferred Stockholders Paid to the Common Stockholders $ 0.82

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