Reference no: EM132794712

Sheffield Limited's ledger shows the following balances on December 31, 2020:

Preferred shares outstanding: 28,000 shares $ 644,000

Common shares outstanding: 50,000 shares 3,800,000

Retained earnings 984,308

Problem 1: Assuming that the directors decide to declare total dividends in the amount of $492,154, determine how much each class of shares should receive if the preferred shares are cumulative and fully participating. Note that one year's dividends are in arrears on the preferred shares, which pay a dividend of $1.15 per share. (Round intermediate percentage calculations to 4 decimal places, e.g. 12.2525% and final answers to 0 decimal places, e.g. 5,275.)

Problem 2: Assuming that the directors decide to declare total dividends in the amount of $492,154, determine how much each class of shares should receive if the preferred shares are non-cumulative and non-participating. Note that one year's dividends are in arrears on the preferred shares, which pay a dividend of $1.15 per share. (Round answers to 0 decimal places, e.g. 5,275.)

Problem 3: Assuming that the directors decide to declare total dividends in the amount of $492,154, determine how much each class of shares should receive if the preferred shares are non-cumulative and are participating in distributions in excess of a 9% dividend rate on the common shares. Note that one year's dividends are in arrears on the preferred shares, which pay a dividend of $1.15 per share.