Business, 01.10.2019 01:20 loki285

Watson, inc. has 10,000 shares of 6%, $100 par value, cumulative preferred stock and 20,000 shares of $1 par value common stock outstanding at december 31, 2014. there were no dividends declared in 2012. the board of directors declares and pays a $100,000 dividend in 2013 and in 2014. what is the amount of dividends received by the common stockholders in 2014? a. $20,000.b. $60,000.c. $100,000.d. $0.

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Answer from: tifftifftiff5069

a. $20,000

Explanation:

As for the information provided,

Total shares outstanding preference cumulative in nature = 6% 10,000 shares of $100 each = 6% $1,000,000

Dividend for each year = $60,000

Equity = 20,000 shares of $1 each = $20,000

Since no dividend is paid in 2012, the preference dividend will be in arrears for 2012 = $60,000

Dividend in 2013 = Dividend to preference for 2012, and for 2013

= $60,000 + $60,000 = $120,000

Since dividend paid = $100,000

$20,000 of preference dividend for 2013 stands in arrears.

Dividend in 2014 = $100,000

This shall be first used to pay dividend in arrears = $100,000 - $20,000 = $80,000

From this first dividend to preference for 2014 will be paid = $80,000 - $60,000 = $20,000

Now this $20,000 will be paid to equity as dividend.

Answer from: Quest

explanation:

c because the item on a bank statement is also referred to as an account statement. in addition, it provides the beginning balance, ending balance, statement date, transaction date for each transaction, payee, customer name and address, statement period, the account holder's account number, and the bank's customer service number

Answer from: Quest

The business cycle is the periodic but irregular up-and-down movement in economic activity, measured by fluctuations in real gross domestic product (gdp) and other macroeconomic variables. a business cycle is typically characterized by four phases—recession, recovery, growth, and decline—that repeat themselves over time. economists note, however, that complete business cycles vary in length. the duration of business cycles can be anywhere from about two to twelve years, with most cycles averaging six years in length. some business analysts use the business cycle model and terminology to study and explain fluctuations in business inventory and other individual elements of corporate operations. but the term "business cycle" is still primarily associated with larger (industry-wide, regional, national, or even international) business trends.

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Watson, inc. has 10,000 shares of 6%, $100 par value, cumulative preferred stock and 20,000 shares o...