York’s outstanding stock consists of 46,000 shares of cumulative 8.50% preferred stock with a $10 par value and also 115,000 shares of common stock with a $1 par value. During its first four years of operation, the corporation declared and paid the following total cash dividends.

York’s outstanding stock consists of 46,000 shares of cumulative 8.50% preferred stock with a $10 par value and also 115,000 shares of common stock with a $1 par value. During its first four years of operation, the corporation declared and paid the following total cash dividends.

 

2013	$	31,000
2014		32,725
2015		81,600
2016		124,100

 

Determine the amount of dividends paid each year to each of the two classes of stockholders assuming that the preferred stock is cumulative. Also determine the total dividends paid to each class for the four years combined. (Round your "Dividend per Preferred Share" answers to 2 decimal places.) Explanation:   Cumulative Preferred Common   2013 ($31,000 paid)           Preferred* $ 31,000           Common—remainder     $ 0       Total for the year $ 31,000     $ 0       (Note: $8,100 in preferred stock dividends in arrears.)                     2014 ($32,725 paid)           Preferred—arrears from 2013 $ 8,100           Preferred* $ 24,625           Common—remainder     $ 0       Total for the year $ 32,725     $ 0       (Note: $14,475 in preferred stock dividends in arrears.)                     2015 ($81,600 paid)           Preferred—arrears from 2014 $ 14,475           Preferred* $ 39,100           Common—remainder     $ 28,025       Total for the year $ 53,575       28,025       (Note: $0 in preferred stock dividends in arrears.)                     2016 ($124,100 paid)           Preferred* $ 39,100           Common—remainder     $ 85,000       Total for the year $ 39,100     $ 85,000       (Note: $0 in preferred stock dividends in arrears.)                     2013-2016 ($269,425 paid)             Total for four years $ 156,400     $ 113,025       * The holders of the cumulative preferred stock are entitled to no more than $39,100 of dividends declared in    any year (8.50% × $10 × 46,000 shares) plus any dividends skipped in prior years.