The following elements of shareholders equity are adapted from the balance sheet of Sacchetti Corporation. Shareholders Equity$

Question:

The following elements of shareholders’ equity are adapted from the balance sheet of Sacchetti Corporation.
Shareholders’ Equity$ Thousands

Preferred Shares, cumulative, $0.75, 45,000 shares issued and outstanding$ ..225

Common Shares, 8,750,000 shares issued and outstanding........875

Sacchetti Corporation paid no preferred dividends in 2014 but paid the designated amount of cash dividends per share to preferred shareholders in all prior years.

Requirement

Compute the dividends to preferred and common shareholders for 2015 if total dividends are $185,000.

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial... Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...