The records of Hoffman Company reflected the following balances in the shareholders equity accounts at December 31, 2013 Common shares, par $14 per share, 18,000 shares outstanding Preferred shares, 6 percent, par S10 per share, 4,900 shares outstanding Retained earnings, $242.000 10 points On January 1, 2014, the board of directors was considering the distribution of a $58,000 cash dividend No dividends were paid during 2012 and 2013 012934 Required: Determine the total and per share dividends amounts that would be paid to the common shareholders and to the preferred shareholders under two independent assumptions 1-o. The preferred shares are noncumulative. (Round your per share amount to 2 decimal places.) Total Per Share Paid to prefrred sharoholders Paid to common sharoholders 56 Paid to preferred shareholders Paid to common sharoholders 10 points 0129-12)1-b. The preferred shares are cumulative. (Round your per share amount to 2 decimal places.) Total |Per Sharo Paid to preferred shareholders Paid to common shareholdens 2. Why were the dividends per common share less for t he second assumpt 56 2. Why were the dividends per common share less for the second assumption? O The total dividend amount and dividends per share of common shares were less under the second assumption because the dividend rate for preferred shareholders was increased 10 points O The total dividend amount and dividends per share of common shares were less under the second assumption because the dividends in arrears on the preferred shares had to be fulfilled before dividends could be paid for the current year 01.2855 3. What factors would cause a more favourable dividend for the common shareholders? (Select all that apply.) Dividends would be more favorable for the common shareholders if The preferred dividends were not in arrears. The Otal dividend distribution was increased | The preferred dividends were not cumulative The preferred dividends were in arrears The total dividend distribution was eased RteSide Limited was issued a charter on January 15, 2017, that authorized the following shares: Common shares: no-par value; 100,000 shares, one vote per share Preferred shares: 7 percent, no-par value $10 per share, 5,000 shares, non-voting During 2017, the following selected transactions were completed in the order given a Issued 20,000 common shares at $18 cash per share b. Issued 3,000 preferred shares at $22 cash per share At the end of 2017, the accounts showed net income of $38,000. Required: 1. Prepare the shareholders' equity section of the balance sheet at December 31, 2017 10 points 01.2832 Shareholders' Equity-December 31, 2017 Total contributed capital Total shareholders equity 2-a. Assume that you are a common shareholder. If Rite-Side Limited needed additional capital, would you prefer to have it issue additional common shares or additional preferred shares? O Preferred shares O Common shares 2-b. Not available in Connect Rowen Furniture Corporation reported the following activities in a recent quarter 58 Net income Purchase of property, plant, and equipment Borrowings under line of credit (bank) Proceeds from issuance of shares Cash received from customers 4,135 871 1,417 10 points 29, 164 46 134 6,594 277 90 8 o28Payments to reduce long-term debt Sale of investments Cash proceeds from sale of property and equipment Cash dividends paid Interest paid Required: Based on this information, present the cash flows from investing and financing activities section of the, er ASPE (Amounts to be deducted should be indicated by a minus sign) Cash flows from investing activities Required is information, present the cash flows from investing and financing actvities sections of the cash ent the cash flows from investing and financing actvites sections of the cash flow stat ASPE (Amounts to be deducted should be indicated by a minus sign.) Cash flows from investing activities 10 points 01 2742 Net cash provided by investing activities Cash flows from financing activities Net cash provided by financing activities The following information pertains to Guy's Gear Company. 59 Sales Expenses: 94,580 Cost of Goods Sold Depreciation Expense Salaries Expense $58,590 10 points 12,580 14,000 85,90 8 012715Net Income 9,41 Accounts Receivable decrease 9,586 Merchandise Inventory increase14,400 Salaries Payable increase 480 Required: Present the operating activities section of the statement of cash flows for Guy's Gear Company using the indirect method to be deducted should be indicated with minus sign.) Cash flows from operating activities-indirect method Adjustments to reconcile net income to cash provided by operating activitles Salaries Payable increase 480 59 Required: Present the operating activities section of the statement of cash flows for Guy's Gear Company using the indirect me to be deducted should be indicoted with minus sign.) nts Cash flows from operating activities -indirect method Adjustments to reconcile net income to cash provided by operating activities Changes in current assets and current liabilities 01:26:57