# Avant Garde Corporation has 175,000 shares of \$1.50 preferred stock outstanding in addition to its common stock. The \$1.50 designation means that the preferred stockholders receive an annual cash dividend of \$1.50 per share. In 2018, Avant Garde declares an annual dividend of \$500,000. The allocation to preferred and common stockholders is: (Click the icon to view the data.) Read the requirements 1. How much in dividends must Avant Garde declare each year before the common stockholders receive any cash dividends for the year? Avant Garde must declare dividends of \$ receive any cash dividends for the year 2. Suppose Avant Garde declares cash dividends of \$350,000 for 2018. How much of the dividends goes to preferred shareholders? How much goes to common shareholders? Requirements 262,500 each year before the common stockholders Answer these questions about Avant Garde's cash dividends. 1. 2. 3. How much in dividends must Avant Garde declare each year before the common stockholders receive any cash dividends for the year? Suppose Avant Garde declares cash dividends of \$350,000 for 2018. How much of the dividends goes to preferred shareholders? How much goes to common shareholders? Is Avant Garde's preferred stock cumulative or noncumulative? How can you tell? Avant Garde passed the preferred dividend in 2017 and 2018. Then in 2019, Avant Garde declares cash dividends of \$1,550,000. How much of the dividends goes to preferred shareholders? How much goes to common shareholders? Class of Stock Preferred Common 2018 Dividends Data Table 4. Total Preferred dividend (175,000 shares x 1.50 per share) . \$262,500 237,500 S 500,000 Print Done PrintDone

Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter16: Retained Earnings And Earnings Per Share
Section: Chapter Questions
Problem 18E: Monona Company reported net income of 29,975 for 2019. During all of 2019, Monona had 1,000 shares...
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