Computation of Dividend paid on common stock under non-cumulative & cumulative schemes.

A corporation was organized on January 1, 2001 and issued the following shares of stock:

1) 1,500 shares of $100 par value, 10% non-participating preferred stock.

2) 15,000 shares of $20 par value common stock.

All shares were issued and outstanding throughout 2001, 2002 and 2003. The corporation declared and paid a cash dividend in each of those years as follows:

2001 - $10,000 2002 - $36,000 2003 - $60,000

Required:

1) Calculate the dividends paid to each class of stock in each of those years assuming the preferred stock is non-cumulative. Use the matrix format listed below.

2) Calculate the dividends paid to each class of stock in each of those years assuming the preferred stock is cumulative. Use the matrix format listed below.

3) Show your work. Please show your supporting calculations and label them to indicate which numbers in the matrix they are supporting.

4) Use the following matrix format in completing this project:

Year  Dividend-Declared   Preferred-Dividends    Preferred-Carryforward    Common-Dividends

2001 $10,000

2002 $36,000

2003 $60,000