Is partlow preferred stock cumulative or noncumulative

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Dividing cash dividends

Partlow Company has the following stockholders' equity:

Paid-in-capital

Preferred stock, 5%,$15par, 7000 shares authorized, 5,500 shares issued. 82,500

common stock, $0.30 par, 1,200,000 shares authorized and issued        360,000

paid-in-capital in excess of par-common                                          400,000

Total paid in capital                                                                     842,500

Retained Earning                                                                         260,000

Total stockholder's Equity                                                          1,102,500

Requirements:

Question 1: Is Partlow's preferred stock cumulative or noncumulative? How can you tell?

Question 2: Partlow declares cash dividends of $30,000 for 2010. How much of the dividends goes to preferred. How much goes to common?

Question 3: Partlow passed the preferred dividend in 2011 and 2012. In 2013 the company declares cash dividends of $45,000. How much of the dividend goes to preferred? How much goes to common?

Reference no: EM132635569

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