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The records of Hollywood Company reflected the following balances in the stockholders? equity accounts at December 31, 2013: Common stock, par $12 per share, 41,000
The records of Hollywood Company reflected the following balances in the stockholders? equity accounts at December 31, 2013: Common stock, par $12 per share, 41,000 shares outstanding Preferred stock, 8 percent, par $10 per share. 6,000 shares outstanding Retained earnings, $216,000 On September 1, 2014. the board of directors was considering the distribution of a $83,000 cash dividend. No dividends were paid during the previous two years. You have been asked to determine dividend amounts under two independent assumptions (show computations): a. The preferred stock is noncumulative. b. The preferred stock is cumulative. Required: 1. Determine the total and per share amounts that would be paid to the common stockholders and to the preferred stockholders under the two independent assumptions. (Round ''per share'' to 2 decimal places.) Preferred Common Noncumulative: Total Per share Cumulative: Total Per share
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