XYZ has 300,000 shares of $100 par, 3% cumulative preferred stock

and 3,000,000 shares of $1 par common stock

There are 400,000 shares of treasury stock (common)

Earnings before interest and tax is $6,200,000

Interest expense was $600,000 and the tax rate is 20%

The company did not pay a dividend last year and wishes to

pay a total of $2,000,000 in dividends

How much will each share of preferred and common receive?

Retained earnings at the beginning of the year are $90,000,000

What will be the final amount in retained earnings at the end of the year?

What are the earnings per common share?

Income Statement 12 mos ending 12/31/2017 Sales Cost of Sales Gross Profit $22,000,000 13,200,000 8,800,000 Depreciation Expense 1,155,000 Tax Expense 825,000 5,280,000 Net Income 3,520,000 Other Information Equipment and computers were purchased for cash 100,000 shares of common stock sold for $10 per share Cash dividends of $150,000 were declared