Question :
71. Slickers, Inc. had the following capital structure during 2010:Preferred stock, : 1228446
71. Slickers, Inc. had the following capital structure during 2010:
Preferred stock, 7%, $50 par value, 1,000 shares issued and outstanding with dividends in arrears for 2008 and 2009.
Common stock, $100 par value, 2,000 shares issued and outstanding.
The total dividends declared and paid during 2010 totaled $25,000. How much of the dividend is paid to the preferred stockholders during 2010 assuming the preferred stock is noncumulative?
A. $3,500
B. $7,000
C. $10,500
D. $14,500
72. Slickers, Inc. had the following capital structure during 2010:
Preferred stock, 7%, $50 par value, 1,000 shares issued and outstanding with dividends in arrears for 2008 and 2009.
Common stock, $100 par value, 2,000 shares issued and outstanding.
The total dividends declared and paid during 2010 totaled $25,000. How much of the dividend is paid to the common stockholders during 2010 assuming the preferred stock is noncumulative?
A. $3,500
B. $7,000
C. $21,500
D. $14,500
73. Slickers, Inc. had the following capital structure during 2010:
Preferred stock, 7%, $50 par value, 1,000 shares issued and outstanding with dividends in arrears for 2008 and 2009.
Common stock, $100 par value, 2,000 shares issued and outstanding.
The total dividends declared and paid during 2010 totaled $25,000. How much of the dividend is paid to the common stockholders during 2010 assuming the preferred stock is cumulative?
A. $3,500
B. $7,000
C. $22,500
D. $14,500
74. Which of the following is a correct statement about cumulative and noncumulative preferred stock?
A. They both receive dividends in arrears.
B. Cumulative stock’s undeclared dividends accumulate each year until paid, while noncumulative stock’s right to receive dividends is forfeited in any year that dividends are not declared.
C. Cumulative preferred stock is guaranteed to receive their dividends.
D. Cumulative preferred stock’s right to receive dividends is forfeited in any year that dividends are not declared. However, noncumulative stock’s undeclared dividends accumulate each year until paid.
75. Cornhusker Corporation plans to raise $10 million cash on January 1, 2010, by issuing either bonds payable (8% interest rate) or cumulative preferred stock (8% dividend rate). How would the annual interest amount on the bonds or annual preferred dividend amount (if paid) affect the net income for the year ended December 31, 2010?
A. Net income would be reduced by the annual interest on the bonds and by the annual preferred stock dividends.
B. Net income would be reduced by the annual interest on the bonds but not by the annual preferred stock dividends.
C. Net income would not be reduced by either the annual interest on the bonds or the annual preferred stock dividends.
D. Net income would be reduced by the annual preferred dividends but not by the annual interest on the bonds.
76. CBA Company reported total stockholders’ equity of $85,000 on its balance sheet dated December 31, 2010. During the year ended December 31, 2011, CBA reported net income of $10,000, declared and paid a cash dividend of $2,000, and issued additional common stock for $20,000. What is total stockholders’ equity as of December 31, 2011?
A. $117,000
B. $113,000
C. $109,000
D. $101,000
77. A company reported total stockholders’ equity of $170,000 on its balance sheet dated December 31, 2010. During the year ended December 31, 2011, the company reported net income of $20,000, declared and paid a cash dividend of $4,000, declared and distributed a 10% stock dividend with a $5,000 total market value, and issued additional common stock for $40,000. What is total stockholders’ equity as of December 31, 2011?
A. $234,000
B. $226,000
C. $231,000
D. $221,000
78. A company reported total stockholders’ equity of $340,000 on its balance sheet dated December 31, 2010. During the year ended December 31, 2011, the company reported net income of $40,000, declared and paid a cash dividend of $8,000, declared and distributed a 10% stock dividend with a $10,000 total market value, purchased treasury stock costing $12,000, and issued additional common stock for $60,000. What is total stockholders’ equity as of December 31, 2011?
A. $432,000
B. $410,000
C. $444,000
D. $420,000
79. A company reported total stockholders’ equity of $540,000 on its balance sheet dated December 31, 2010. During the year ended December 31, 2011, the company reported net income of $60,000, declared and paid a cash dividend of $18,000, declared and distributed a 10% stock dividend with a $15,000 total market value, sold treasury stock costing $12,000 for $15,000, and issued additional common stock for $70,000. What is total stockholders’ equity as of December 31, 2011?
A. $650,000
B. $670,000
C. $667,000
D. $655,000
80. Wendell Company provided the following pertaining to its recent year of operation:
? Common stock with a $10,000 par value was sold for $50,000 cash.
? Cash dividends totaling $20,000 were declared, of which $15,000 were paid.
? Net income was $70,000.
? A 5% stock dividend resulted in a common stock distribution, which had a $5,000 par value and a $23,000 market value.
? Treasury stock costing $9,000 was sold for $7,000.
How much did Wendell’s total stockholders’ equity increase during the recent year of operation?
A. $107,000
B. $84,000
C. $80,000
D. $112,000
